Unable to set up a public folder sync collection to synchronize directly to an existing target public folder (4270983)

When selecting the source and target PF in the collection properties, then clicking Add, the following pop-up box appears:

Are you sure you want to add a pair that includes the source folder <folder path> and target folder <folder path> Yes/No

Selecting Yes leads to a subfolder being created rather than syncing directly to the selected target folder. Selecting No cancels the request.

The following pop-up box should appear, but doesnt:

Do you want to create a folder PF/Folder/Folder on the Exchange target server &amp; synchronize with the source Exchange folder PF/Folder?
Click No if you want to synchronize all the items from the source Exchange folder PF/Folder directly to the target Exchange folder PF/Folder Yes/No/Cancel

This message is required to synchronize directly to the existing target PF, by selecting the No option.

The above behaviour occurs when there is no local replica of the selected public folder on the target server. This folder name appears in grey writing in the collection properties rather than black.

Set up folder replication so that a local replica exists.