I cannot personally replicate that issue using the same eM Client version with a eg: Gmail account , Live account or Local IMAP account “New Contact” Address. Might be something to do with your specific email account.
Whos your email account with. Also is it a POP, IMAP or Exchange account. Also has this problem just started recently or has this always been the case.
There are two things you can try; uninstall/reinstall eM Client, or start with a blank database, and we can see if there is a difference in either case.
Uninstall/reinstall:
If you can manage it make a backup using Menu > Backup. If not, skip this step.
Close and uninstall eM Client, making sure NOT to delete the database folder when asked. That will ensure all your data and settings are there later.
If it exists, delete the C:\Program Files (x86)\eM Client folder.
Go to Menu > Settings > General > Storage and change the database location to a new folder. Make a note of the current location so you can come back to it later.
Restart eM Client.
Cancel any setup windows.
Reproduce the issue saving to Local Folders.
If the result is the same, go to Menu > Settings > General > Storage and change the database location back to what it was, and restart eM Client.