phpList requires an uploadimages dir when sending a campaign but if it exists the new update process failes

When sending a new campaign I get an "Image browsing is not available because directory “…/public_html/lists/uploadimages” does not exist or is not writeable. " I fixed this by creating the directory. Then, when I use the new Update process it says that uploadimages is not expected or required and it does not let the update process move forward until the directory is deleted.

Am I doing something wrong or are their conflicting requirements?

You should change the location of uploadimages directory outside lists directory eg : /public_html/images.

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