Subversion integration with wM 8.0

We are trying to integrate webMethods with Subversion Version Control System.

Environment: webMethods 8.0

webMethods IS is configured with Subversion repository. But we are not able to create any new element (folder, flow service, etc) using Designer, however for existing services, VCS integration is working fine without any issues (Check-Out, Check-In).

Below are the exception details while creating new element. Any idea on this?
[ISS.0132.9117] error running command [svn, add, D:\Program Files\SoftwareAG\IntegrationServer\packages\Default\ns\Default\test\flow.xml, D:\Program Files\SoftwareAG\IntegrationServer\packages\Default\ns\Default\test\node.ndf, --non-recursive]; exit value: 1; output: [svn: ‘D:\Program Files\SoftwareAG\IntegrationServer\packages\Default\ns\Default\test’ is not a working copy]

Basically, new files are not getting added to VCS. The error says “is not a working copy” as it could not find the “.svn” files inside test directory.
I had to add them manually to Subversion and refresh the Designer session to Check-out and Check-in “test” flow service.
SAG document --> “With the VCS Integration enabled, any new packages (or the supported elements within them) that you create in Developer will be automatically added to the VCS and marked as checked out.”