Until this is resolved, you may want to resort to the old method of actually dragging app icons to the desired position rather than using drag from the VoiceOver rotor.
I had this problem before iOS 17. I would move an app and when I dropped where I wanted, Voiceover would say, for example, "Entertainment folder created with" and then it would say the app. Eventually I would be able to move the apps and not have a folder created.
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I am having this same issue,…
I am having this same issue, and it's annoying.
Known issue
This is one of the newly introduced bugs in iOS 17: https://www.applevis.com/blog/ios-17-ipados-17-accessibility-report-voiceover-braille-low-vision-issues-improvements
Until this is resolved, you may want to resort to the old method of actually dragging app icons to the desired position rather than using drag from the VoiceOver rotor.
The moving apps aggrivation.
I had this problem before iOS 17. I would move an app and when I dropped where I wanted, Voiceover would say, for example, "Entertainment folder created with" and then it would say the app. Eventually I would be able to move the apps and not have a folder created.