The symptoms are consistent with a damaged New context-menu handler, so back up its registry entry, verify the handler value, restore it if necessary, and restart Windows Explorer.
Repair the New-menu handler
Registry changes can affect Windows Explorer; export the key first so it can be restored.
- Press Win+R, enter
regedit, and select Yes. - Navigate to:
HKEY_CLASSES_ROOT\Directory\Background\shellex\ContextMenuHandlers\New - Right-click the New key → Export. Save the
.regbackup somewhere accessible. - In the right pane, double-click (Default).
- Its value should be:
{D969A300-E7FF-11d0-A93B-00A0C90F2719} - If the New key is missing, create it:
- Right-click ContextMenuHandlers → New > Key.
- Name it
New. - Double-click (Default) and enter the value above.
- Restart Explorer:
- Press Ctrl+Shift+Esc to open Task Manager.
- Select Windows Explorer → Restart.
- Test New > Folder, New > Shortcut, and New > Bitmap image again.
This entry associates the folder-background menu with a handler through its CLSID—the registration method Windows uses for shortcut-menu handlers.^1^ The same repair is identified for this exact combination of malformed menu, nonworking Folder/Shortcut commands, and abnormal Bitmap creation.^2^
If it makes matters worse, double-click the exported .reg file and restart Explorer to roll back the change.
If the registry value was already correct
- Compare the classic menu. Right-click the folder background → Show more options → New. Windows 11 exposes older context-menu extensions through Show more options; this comparison can help distinguish the streamlined-menu UI from a handler-wide failure.^3^
- Check the actual Windows build. Press Win+R, run
winver, and note the version and OS build. “16H2” is not enough to select a version-specific fix. Install available updates from Settings > Windows Update, restart, and retest. - Test another Windows user account.
- If the menu works there, the problem is confined to the original user profile or its per-user shell registrations.
- If it fails there too, continue with system repair.
- Isolate third-party shell software. If this began after installing or updating an archiver, graphics tool, Office add-in, or context-menu utility, uninstall or disable that application temporarily. Alternatively, perform a clean boot; Microsoft describes this as starting Windows with a minimal set of drivers and startup programs to isolate software conflicts.^4^
Repair Windows components
Open Command Prompt as administrator and run DISM first, followed by SFC:
DISM.exe /Online /Cleanup-image /Restorehealth
sfc /scannow
Wait for each command to finish, restart Windows, and test the menu. DISM repairs the Windows component image; SFC then checks protected system files and replaces damaged copies when possible.^5^
Last supported repair
If the handler, another profile, clean boot, updates, DISM, and SFC do not resolve it:
- Open Settings > System > Recovery.
- Under Fix problems using Windows Update, select Reinstall now.
- Keep the computer connected to power and the internet.
- Restart after installation.
This reinstalls the current Windows version and repairs system files and components while preserving apps, files, and settings.^6^ If that option is absent, it may be unavailable on older or organization-managed installations. In that case, use Microsoft Support or perform an in-place repair with matching Windows installation media rather than a clean installation.
References
- Customizing a Shortcut Menu Using Dynamic Verbs
- Windows 11 New Submenu Broken - Microsoft Q&A
- [Windows 11](https://support.microsoft.com/windows/experience/fileexplorer/file-explorer-in-windows)
- [Windows 11](https://support.microsoft.com/windows/deployment/updates-lifecycle/troubleshoot-problems-updating-windows#repair-hard-drive-errors)
- Use the System File Checker tool to repair missing or corrupted system files | Microsoft Support
- Fix issues by reinstalling the current version of Windows | Microsoft Support