update:
Just created a folder (e.g. "X") and moved all items such as Appointments, Recycle Bin, etc there so they are out of my way. Moved this folder to be at the bottom of the item tree. Then changed its icon. Then moved to the folders with text notes above. Selected one item and tried to insert a text child item using a button from the Tree/Insert child menu, that I dragged to my custom toolbar.
This created a symbolic link of the folder X at the bottom of the item tree.
Undo worked.
Tried again. Same result.
After typing this text, went there to try it again and the error stopped repeating itself and the toolbar buttons appear to work correctly.
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