List with Sub Items shows List Name as top level item

I'm creating a workflow to create a custom list on login which needs to contain sub-items but it's doing something rather weird.

The list is created fine, and I can apply it to a entity and that works, but when clicking the dropdown on the Entity, it shows the actual List Name as the top most item.  Looking at the actual List in the Customize screen shows how I would expect.

If I create a list manually with sub items it works fine, it seems that my workflow must be messed up somewhere but I can't figure it out.

Any ideas?

Below is a chopped down example which shows the same problem.

Function Template_CanLogin(DomainName, ProjectName, UserName)

     Set custom = TDConnection.Customization                                  'Connect to the TDConnection
     Set customLists = custom.lists                                           'Connect to the Lists item

     if customLists.IsListExist("SubItem_List") Then                          'See if the list already exists

           Set custL = customLists.list("SubItem_List")                       'Connect to this List
           Set nd = custL.RootNode                                            'Get all the items that are currently in that list
           For each delX in nd.Children                                       'Loop through each item found and delete them "else duplicates will occur on load"
                ndName = delX.Name                                            'Get the name of this item
                nd.RemoveChild(ndName)                                        'Pass the name to the .RemoveChild function
           Next
           custom.Commit                                                      'Commit changes to the system

      else                                                                    'List is missing

           Set NewList = customLists.AddList("SubItem_List")                  'List wasn't there so Create it
           custom.Commit                                                      'Commit changes to the system

      End if

     Set customList = customLists.list("SubItem_List")                        'Connect to the List
     Set node = customList.RootNode                                           'Connect to that lists RootNode
     Set NewListItem = node.AddChild("Releases")                              'Create the top most item in the list that all sub items will be under

'Top item is now added and all is good.
'Adding Sub-Items seems to be where it trips up and grabs the list name as the top item
     For each child in node.Children                                              'Now loop through all items to find the new items Object

          if child.Name = "Releases" Then                                         'Is this the item we just created?

             nodeName = child.Name                                                'Yep, now use this as the parent for the next node
             msgbox  "Found " & nodeName & " Adding child item"
             child.AddChild("Folder Name")                                        'Add a new Sub-Child item to what we just created earlier

             For each y in child.Children
               msgbox "Found " & y.Name                                       'Loop throguh looking for the item we just added to ensure it exists.
             Next

          End If

     Next
     Custom.Commit                                                            'Commit all changes to the system

     Set custom = Nothing                                                     'Clear all the variables
     Set customLists = Nothing
     Set customList = Nothing
     Set node = Nothing
End Function

Thanks,

Mike