Disk Utility - New disk image directly from folder on external drive is failing

The Disk Utility throws error 60 when trying to create a new disk image directly from a folder on an external drive. I've reported the issue to Apple Support so, hopefully, it will come to the attention of the appropriate engineering team and be fixed in a future update.

As a workaround, first copying the desired folder to the internal (system) drive and then creating the disk image (using the copy) works. Unfortunately, this can be a problem for large folders due to the extra (temporary) storage required.

- Pie Lover