It seems that the arguments of `Drive.Files.insert` are `resource: Drive_v2.Drive.V2.Schema.File, mediaData: Blob, optionalArgs: Object`. So, when your script is modified, it becomes as follows.
From
return Drive.Files.insert({
supportsAllDrives: true,
parents: [{ id: parentFolderId }],
title: subFolderName,
mimeType: `application/vnd.google-apps.folder`
})
Toreturn Drive.Files.insert({
parents: [{ id: parentFolderId }],
title: subFolderName,
mimeType: `application/vnd.google-apps.folder`
}, null, { supportsAllDrives: true });