If the New context menu is missing from a right-click on the desktop, you are missing (or have an incorrect) registry key/value at:
HKEY_CLASSES_ROOT\Directory\Background\shellex\ContextMenuHandlers\New
You should have a <No Name> value of type REG_SZ with the following data value:
\{D969A300-E7FF-11d0-A93B-00A0C90F2719\}
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