Using { slug } to create subfolders won't work
Got the problem solved, I had wanted to have the option of selecting photos from another folder so in the field settings I had Default Upload Location with the {slug} in there. When I switched it to "restrict to single folder" and set the {slug} then it is all functioning as expected. I don't think it would make sense selecting a photo from another folder in this field as the asset wouldn't be able to move when entry is saved. Hope this makes sense. I just have the same issue as the other post now where I don't see the caption field until the entry is saved.