‘Desktop file not found’ error when trying to create appimage

I am trying to create appimage for Foliate ebook reader on EndevourOS. When i run the appimagetool i get this:

[user@user-pc ~]$ appimagetool Foliate.AppDir/
appimagetool, continuous build (commit 8bbf694), build <local dev build> built on 2020-12-31 11:48:33 UTC
Desktop file not found, aborting

The desktop file exist so i don’t know why i am getting this error.

This is the structure of Foliate.AppDir:

Foliate.AppDir/
├── AppRun
└── usr
    ├── bin
    │   └── foliate
    ├── lib
    │   ├── ld-linux-x86-64.so.2
    │   ├── libblkid.so.1
    │   ├── libbrotlicommon.so.1
    │   ├── libbrotlidec.so.1
    │   ├── libbz2.so.1.0
    │   ├── libcairo-gobject.so.2
    │   ├── libcairo.so.2
    │   ├── libc.so.6
    │   ├── libexpat.so.1
    │   ├── libffi.so.8
    │   ├── libfontconfig.so.1
    │   ├── libfreetype.so.6
    │   ├── libgcc_s.so.1
    │   ├── libgio-2.0.so.0
    │   ├── libgirepository-1.0.so.1
    │   ├── libgjs.so.0
    │   ├── libglib-2.0.so.0
    │   ├── libgmodule-2.0.so.0
    │   ├── libgobject-2.0.so.0
    │   ├── libgraphite2.so.3
    │   ├── libharfbuzz.so.0
    │   ├── libmount.so.1
    │   ├── libmozjs-115.so
    │   ├── libm.so.6
    │   ├── libncursesw.so.6
    │   ├── libpcre2-8.so.0
    │   ├── libpixman-1.so.0
    │   ├── libpng16.so.16
    │   ├── libreadline.so.8
    │   ├── libstdc++.so.6
    │   ├── libX11.so.6
    │   ├── libXau.so.6
    │   ├── libxcb-render.so.0
    │   ├── libxcb-shm.so.0
    │   ├── libxcb.so.1
    │   ├── libXdmcp.so.6
    │   ├── libXext.so.6
    │   ├── libXrender.so.1
    │   └── libz.so.1
    └── share
        ├── applications
        │   └── com.github.johnfactotum.Foliate.desktop
        ├── glib-2.0
        │   └── schemas
        │       └── com.github.johnfactotum.Foliate.gschema.xml
        └── icons
            └── hicolor
                └── 256x256
                    └── apps
                        └── foliate.png

This is the content of desktop file:

[Desktop Entry]
Name=Foliate
Exec=foliate
Icon=foliate
Type=Application
Categories=Office;Viewer;

This is the content of AppRun file:

#!/bin/bash
HERE="$(dirname "$(readlink -f "${0}")")"
export PATH="${HERE}/usr/bin:${PATH}"
export LD_LIBRARY_PATH="${HERE}/usr/lib:${LD_LIBRARY_PATH}"
export GSETTINGS_SCHEMA_DIR="${HERE}/usr/share/glib-2.0/schemas"
exec gjs "${HERE}/usr/bin/foliate" "$@"

I am getting this Desktop file not found error for other appimages i try to create so it looks this is a general issue.