HI Fraser. I'm Greg, awarded MVP for eleven years, Volunteer Moderator, and Independent Advisor here to help you until this is resolved.
- Right click Start button to open Task Manager, show More Details, then choose Processes tab, scroll down to Windows Processes, then further down almost to the bottom to Windows Explorer. Right click to Restart Explorer, then Restart PC.
- See if you can System Restore to a point before the problem started:
https://www.windowscentral.com/how-use-system-r...
System Restore is your first line of defense and can take you back to a point before a problem began. If it doesn't help then you can undo it. Read about it first in the tutorial above and then try restoring to just before this started.
If the problem repeats or System Restore doesn't work then check which Windows Updates were installed at Settings > Update & Security > Windows Updates > Update History, uninstall them there or System Restore again, then immediately check for and block the Updates with the Hide Updates tool explained here: https://www.tenforums.com/tutorials/8280-hide-s...
- See all other fixes for Can't create new folder:
https://thegeekpage.com/fix-cant-create-new-fol...
https://windowsreport.com/fix-cannot-create-new...
- See if downloading and merging the .reg files for New Folder and Shortcut fixes it:
https://www.tenforums.com/tutorials/24412-add-r...
- If that's not enough go to Settings > Update & Security > Windows Update > Windows Security > Virus & Threat Protection > Virus & Threat Protection Settings > Manage Controlled Folder Access > Test turning Off Controlled Folder Access to check if the problem goes away.
- Next, In WIndows Security Center > App & Browser Control > turn Off Check Apps & Files to see if this fixes it.
- If nothing above works then go over this checklist to make sure the install is set up correctly, optimized for best performance, and any needed repairs get done: http://answers.microsoft.com/en-us/windows/wiki...
Start with Step 4 to turn off Startup freeloaders which can conflict and cause issues, then Step 7 to check for infection the most thorough way, then step 10 to check for damaged System Files, and also Step 16 to test a new Local Admin account. Then continue with the other steps to go over your install most thoroughly.
- If nothing else helps you can run a Repair Install by installing the Media Creation Tool and choosing from it to Upgrade Now. This reinstalls Windows in about an hour while saving your files, apps and most settings, solves many problems while also bringing it up to the latest version 1809 which you need anyway and by the most stable method. http://windows.microsoft.com/en-us/windows-10/m.... You can wait until the new Version 1903 is released shortly.
I hope this helps. Feel free to ask back any questions and keep me posted. If you'll wait to rate whether my post helped you, I will keep working with you until it's resolved.
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