Important This section, method, or task contains steps that tell you how to modify the registry. However, serious problems might occur if you modify the registry incorrectly. Therefore, make sure that you follow these steps carefully. For added protection, back up the registry before you modify it. Then, you can restore the registry if a problem occurs. For more information about how to back up and restore the registry, click the following article number to view the article in the Microsoft Knowledge Base: 322756 How to back up and restore the registry in Windows
To resolve this issue, use Registry Editor to verify that the registry key listed below has the value listed, and if needed, edit the value to match the value listed.
Registry key:
HKEY_CLASSES_ROOT\Directory\Background\shellex\ContextMenuHandlers\New\ (Default)
Value for (Default):
{D969A300-E7FF-11d0-A93B-00A0C90F2719}
NOTE: This registry entry only exists if the Windows Desktop Update component is installed. If the Windows Desktop Update component is not installed, add the registry entry and (Default) value.