Opening New folder in the same finder window - despite setting the preference

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Hello,

I am working on iMac 8.1. Whenever I open a new folder, it opens up in a new window. I tried setting the preference, but still no difference. Any ideas?
 
Joined
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Your Mac's Specs
Mac Mini (Late 2014) 2.6GHz Intel Core i5 Memory: 8GB 1600MHz DDR3
We need more info.
What OS?
Which setting did you look at, what is it set to?
 

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