It was also called folder in Atari TOS, which was clearly inspired by Mac OS as well.
Of course, by then it was after GEM 2 and had been neutered by the lawsuit which forced it to abandon the desktop metaphor for 2 permanently tiled windows
The user interface shows folders but the programming manuals refer to directories.
In the File menu in TOS 2.06 it lists both Create Folder... and Close Directory