In SDL Web, unable to create component from left navigation pane

- Prior to upgrading to SDL Web 8.5, a content editor could create a new component by right clicking a folder in the left nav pane.

- In Web 8.5, this option is no longer available.

The ability to remove a new component from left navigation pane was intentionally removed in Web 8.1.1, to match the originally intended behavior of Windows Explorer.  There it is possible to only add items to the tree that are visible in that context (so just folders).
In Web 8.5, new components are created via the Create menu at top or by bringing up the right-click context menu from the main pane.

Also see KB article In Web 8.5, unable to create a new component in the main pane when there is no empty space via right-click context menu