Which albums does a new project start with?
The default albums you list under Settings are created on every project the first time its Photos tab opens; changing the list does not touch projects that already have their albums.
A new project starts with the default albums listed under Settings, then Workspace, then Projects, in the Default albums section. They are created the first time someone opens that project's Photos tab, so every project begins with the same structure.
Changing the defaults
Add, rename, reorder, or remove default albums in that section. Changes save as you make them and need the Manage workspace settings permission. The new list applies to projects whose Photos tab has not been opened yet. Projects that already have their albums keep them exactly as they are, so a change here never renames or removes an album a team member is already using.
Albums on a project
On a project's Photos tab, Albums shows the project's albums beside All photos. From there you can add an album for that project only, rename one, delete an empty one, and move photos in with the bulk actions menu or by dragging. Deleting an album never deletes its photos; they stay in All photos.
Related: How do I tag project photos? and How do I reuse a report layout?.
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