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Creation of walls on the first level will happen the first time you click on the Wall Action after creating blocks and leaving Structure Action. These walls form the exterior perimeter of the building, and are created on all the portions of the block edges that are not contained within another block. In this way, no interior walls are created.
The block creation limitations ensure continuity of exterior walls, and avoid overly complex situations that would present difficulties for roof creation, load generation, and shear line design.
At this stage, you should make all the changes to the walls that you want to be carried to the upper levels, such as subdividing walls, moving walls, changing wall materials, creating openings, and creating interior walls.