Question

I want to create a new git repository of a folder under an existing git repository. I want the history to be preserved in the new repository. How do I create this new git repository?

Answer 1

You can clone it, and then apply on the clone a filter-branch in order to split that repository, extracting only the directory you want (with its full history).

See Detach subdirectory into separate Git repository

Note the git clone --no-hardlinks /XYZ /ABC used during the cloning step:

The --no-hardlinks switch makes git use real file copies instead of hardlinking when cloning a local repository.