Adding new Series, path issues

This should be the parent folder that contains your tv shows, Sonarr will sort them for you. If you don’t want Sonarr to move them that should be fine as long as Sonarr sees them imported at some point, otherwise it will treat it as missing, if they are imported then moved it will treat them as missing as well, unless you enable “Automatically Ignore Deleted Episodes”. There might be issues due to how iTunes renames them, but not a lot of people are doing it this way.

Sonarr will get the completed path from SAB and import the files to the location you specify.

Unless you enabled the option to create empty series folders (Media Management settings) this is expected, it won’t create the folder until it needs to import a file.