Unable to create a FeatureClass

Error Message

Attempting to convert graphics to features in ArcMap via the Convert Graphics To Features command fails, and the following error is displayed:

"Unable to create a FeatureClass"

Cause

Graphics can be converted into either feature classes or shapefiles using the Convert Graphics To Feature command. The error occurs when converting graphics to a shapefile and attempting to save the shapefile to a system folder, for example, Program Files.

Solution or Workaround

C:\Users\username\Documents\ArcGIS