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"Create new project" link in task creation form is an overkill
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It's an overkill for the task creation form to link such a rarely used feature as "Create New Project". Task creation is one of the entry points for new/casual users, and it is good to offer them just the fields they will need in order to keep focus an to diminish the risk of confusion. What if we just remove it?

Creating a project is a significant action in your average Phabricator instance, not something done lightly when you are in the middle of a task creation. In addition to this, probably many instances restrict the creation of new projects to a certain group of users, which makes that link even more pointless. This is the case of this instance here, also of Wikimedia's instance, where users clicking that link will only get a dialog like:

You Shall Not Pass: Projects
You do not have permission to create new projects.
Users with the "Can Create Projects" capability:
Members of the project "Meta-Project Creationists" can take this action.

Therefore, if you we are not convinced about removing the link entirely, at least it should be shown only to users with permissions to create projects.

Initial report:

Event Timeline

qgil raised the priority of this task from to Needs Triage.
qgil updated the task description. (Show Details)
qgil added projects: Maniphest, Projects.
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qgil added a subscriber: qgil.

I've used it 4-5 times this month, actually. But we should remove it if you can't make projects.

Basically the short answer is, if you need clean/simple creation for "non-company" folks, that to us is Nuance, or maybe also Spaces depending where that goes.

But even if use is uncommon, it saves pretty significant time, and I don't see any downside beyond the error case you present. In general we prefer to steer Phabricator towards power users, not occasional ones. Hopefully removing the link solves most concerns.

In an open source project, any user is part of "company" as any user can find bugs and report them...

But anyway, if the link is shown only to those users with permissions to create projects, then the solution is good enough, yes.

My concern is that someone shouldn't need to be a user of Phabricator nor a member of a company (or open source project) to file bugs or feature requests. Certainly interacting directly in Maniphest is more aligned with Wikimedia's core values than a separate front-line support area, but I wouldn't generalize that to all open source installs. (We are currently debating this very topic privately).

And also perhaps we are the unicorn in the open source world, haha.