1. In the event dashboard, click on the "Content" tab from the sidebar.

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2. Click on the 'Gallery' feature page if it has already been added to the 'App Layout'.

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3. Click on the "New Folder" button on the top to create a new folder.

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4. This will open a new modal where you can enter details such as the folder name, type, and importantly you can update the thumbnail image of your folder.

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5. Simply click on the image option and upload a desired image of your choice.

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6. Once the image is uploaded, click on "Save".

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7. Please note the thumbnail image field is a mandatory option hence this field is required and it cannot be blank.