When you right-click in a Folder or empty area on the desktop, the “New” menu that appears may not contain the “Folder” entry.
Also, when attempting to create a folder by clicking the “New Folder” toolbar button in a folder or by pressing the Ctrl + Shift + N keys, folder is not created.
There are many solutions online which not at all helping or solving the issue.
After reading all posts i find out how to solve this problem,and fix the problem in all versions of Windows, including Windows 10/11.
Type cmd in search window
Start the Registry Editor (regedit.exe)
Run as Administrator
Navigate to the following location: HKEY_CLASSES_ROOT\Folder
In the right-pane, double-click (default) and set its data to Folder (replace any other word like key_auto_file etc)
Exit the Registry Editor.
Log off and log back in.
ONLY ONE SOLUTION, LET ME KNOW IF ITS WORKS OR NOT IN COMMENTS