[New+] Hide existing new - remake (#44979)

## Summary of the Pull Request
- Add the ability for users and admins (GPO) to control whether to
display built in New on the context menu.
 - Changes to the setting are immediately reflected in the experience.
 - Built-in New is restored on uninstall.

## PR Checklist
Note: Supersedes https://github.com/microsoft/PowerToys/pull/39843 

- [x] **Closes**: [New+] Replace default New entry #37545 and Replace
"New" with New+ option #37946
- [x] **Communication:** Discussed with @niels9001 - 1/22/2025
- [x] **Tests:** Completed manual test pass see highlight below
- [x] **Localization:** All end-user-facing strings can be localized
- [x] **Dev docs:** Updated "doc\devdocs\modules\newplus.md"
- [n/a] **New binaries:** Added on the required places
- [n/a] [JSON for
signing](https://github.com/microsoft/PowerToys/blob/main/.pipelines/ESRPSigning_core.json)
for new binaries
   - [x] [WXS for installer] Updated installer (uninstall custom action)
- [n/a] [YML for CI
pipeline](https://github.com/microsoft/PowerToys/blob/main/.pipelines/ci/templates/build-powertoys-steps.yml)
for new test projects
- [n/a] [YML for signed
pipeline](https://github.com/microsoft/PowerToys/blob/main/.pipelines/release.yml)
- [No] **Documentation updated:** Pending, coming soon. (original PR 
https://github.com/MicrosoftDocs/windows-dev-docs/pull/5473)

## Detailed Description of the Pull Request / Additional comments
Added the ability for users' admins' to display Windows built-in New or
not
	
I'm NOT aware of an official supported way to do this, so I'm achieving
this by adding an invalid context menu handler in place of New in the
Computer\HKEY_CURRENT_USER\Software\Classes\Directory\background\ShellEx\ContextMenuHandlers\New
	
Changes are immediate, after applying the change, built-in New is
shown/hidden accordingly
	
	Updates to New+ Settings UI
New setting introduced to track user' preference (saved to
newplus/settings.json)
GPO setting introduced for control New visibility via GPO (GPO wins over
user preference)
	
	Updates to New+ power_module.cpp
When runner is running new plus will also apply built-in New admin GPO
and user preference (GPO wins over user preference) to ensure correct
behavior on setting restore and GPO application.
		
	Updates to installer 
		Uninstall always reenable built-in "New" context menu 
	
	Updated DevDoc
		Added a note on how to manually restore built-in New

## Validation Steps Performed
Windows 11 x64
	Settings UI
	New+ enabled
	New+ disabled
	GPO setting enabled
	GPO settings disabled
	Manually updating newplus/settings.json

Windows 11 ARM64
	I tested the reg hack manually, but didn't go through a full pass. 

Windows 10 x64
	NOT tested. 

Windows 11, Settings, New+ Disabled and no GPO
<img width="1040" height="1002" alt="image"
src="https://github.com/user-attachments/assets/1b827b10-f009-4b0b-954f-d9311d40d201"
/>

Windows 11, Settings, New+ Enabled and no GPO
<img width="1015" height="781" alt="image"
src="https://github.com/user-attachments/assets/a5fa09d3-7fd3-4830-99a4-5f2ac9ce1a38"
/>

Hide built-in New: Off (the default)
<img width="321" height="417" alt="image"
src="https://github.com/user-attachments/assets/355fea60-bbb8-4f11-b648-291aaf0c4a6d"
/>

Hide built-in New: On
<img width="1015" height="87" alt="image"
src="https://github.com/user-attachments/assets/e83e45c4-6b67-443b-b045-26e7dda2cf46"
/>

Modern
<img width="308" height="360" alt="image"
src="https://github.com/user-attachments/assets/b164b240-6e67-410c-8481-7db3ee3225b7"
/>

Classic
<img width="308" height="289" alt="image"
src="https://github.com/user-attachments/assets/e2b6c262-a311-454c-9c76-40cb11ff2970"
/>

Disabling New+ also unhide New
<img width="1031" height="569" alt="image"
src="https://github.com/user-attachments/assets/29b8dae7-8190-4e64-b106-c6861e472a3d"
/>

<img width="308" height="353" alt="image"
src="https://github.com/user-attachments/assets/e1977d6b-dc85-4db4-b9ab-c7bb2b27dde2"
/>



Windows 11, Settings, New+ Enabled and with GPO

Hide built-in New: GPO enabled
<img width="1020" height="691" alt="image"
src="https://github.com/user-attachments/assets/75053ab8-92c6-4d38-b1b8-9b0d8293c207"
/>

Hide built-in New: GPO disabled
<img width="1050" height="161" alt="image"
src="https://github.com/user-attachments/assets/1a50b841-ff01-4662-a923-aee63717c834"
/>

doc/devdocs/modules/newplus.md

@@ -141,3 +141,10 @@ Note: The DllHost process loads the DLL only when the context menu is triggered
   - A signature issue with the MSIX package
   
 - For development and testing, using the Windows 10 handler can be easier since it doesn't require signing.
+
+## Restoring Built-in Windows New context menu
+If the Windows 11 built-in New context menu doesn't reappear on uninstalling PowerToys, some issue with settings etc. here's how to restore the built-in New context menu.
+
+1. Open Registry Editor
+1. Go to the key "Computer\HKEY_CURRENT_USER\Software\Classes\Directory\background\ShellEx\ContextMenuHandlers"
+1. Delete the "New" subkey (i.e. fullpath "Computer\HKEY_CURRENT_USER\Software\Classes\Directory\background\ShellEx\ContextMenuHandlers\New")

installer/PowerToysSetupCustomActionsVNext/CustomAction.cpp

@@ -1119,6 +1119,35 @@ LExit:
     return WcaFinalize(er);
 }
 
+UINT __stdcall RestoreBuiltInNewContextMenuCA(MSIHANDLE hInstall)
+{
+    HRESULT hr = S_OK;
+    hr = WcaInitialize(hInstall, "RestoreBuiltInNewContextMenuCA");
+
+    constexpr wchar_t built_in_new_registry_path[] = LR"(Software\Classes\Directory\Background\ShellEx\ContextMenuHandlers\New)";
+
+    HKEY key{};
+
+    if (RegOpenKeyExW(HKEY_CURRENT_USER,
+        built_in_new_registry_path,
+        0,
+        KEY_ALL_ACCESS,
+        &key) != ERROR_SUCCESS)
+    {
+        return WcaFinalize(ERROR_SUCCESS);
+    }
+
+    if (RegDeleteValueW(key, nullptr) != ERROR_SUCCESS)
+    {
+        RegCloseKey(key);
+        return WcaFinalize(ERROR_SUCCESS);
+    }
+
+    RegCloseKey(key);
+
+    return WcaFinalize(ERROR_SUCCESS);
+}
+
 UINT __stdcall TelemetryLogInstallSuccessCA(MSIHANDLE hInstall)
 {
     HRESULT hr = S_OK;

installer/PowerToysSetupCustomActionsVNext/CustomAction.def

@@ -7,6 +7,7 @@ EXPORTS
 	ApplyModulesRegistryChangeSetsCA
 	DetectPrevInstallPathCA
 	RemoveScheduledTasksCA
+	RestoreBuiltInNewContextMenuCA
 	TelemetryLogInstallSuccessCA
 	TelemetryLogInstallCancelCA
 	TelemetryLogInstallFailCA

installer/PowerToysSetupVNext/Product.wxs

@@ -161,6 +161,9 @@
       <!-- Clean Video Conference Mute registry keys that might be around from previous installations. We've deprecated this utility since then. -->
       <Custom Action="CleanVideoConferenceRegistry" Before="InstallFinalize" Condition="NOT Installed" />
 
+      <!-- Restore built-in "New" context menu in case user disabled it via New+ -->
+      <Custom Action="RestoreBuiltInNewContextMenu" Before="RemoveFiles" Condition="Installed AND (REMOVE=&quot;ALL&quot;)" />
+
     </InstallExecuteSequence>
 
     <CustomAction Id="SetLaunchPowerToysParam" Property="LaunchPowerToys" Value="[INSTALLFOLDER]" />
@@ -262,6 +265,8 @@
 
     <CustomAction Id="SetBundleInstallLocation" Return="ignore" Impersonate="no" Execute="deferred" DllEntry="SetBundleInstallLocationCA" BinaryRef="PTCustomActions" />
 
+    <CustomAction Id="RestoreBuiltInNewContextMenu" Return="ignore" Impersonate="yes" Execute="deferred" DllEntry="RestoreBuiltInNewContextMenuCA" BinaryRef="PTCustomActions" />
+
     <!-- Close 'PowerToys.exe' before uninstall-->
     <Property Id="MSIRESTARTMANAGERCONTROL" Value="DisableShutdown" />
     <Property Id="MSIFASTINSTALL" Value="DisableShutdown" />

src/common/GPOWrapper/GPOWrapper.cpp

@@ -292,4 +292,8 @@ namespace winrt::PowerToys::GPOWrapper::implementation
     {
         return static_cast<GpoRuleConfigured>(powertoys_gpo::getConfiguredRunAtStartupValue());
     }
+    GpoRuleConfigured GPOWrapper::GetConfiguredNewPlusHideBuiltInNewContextMenuValue()
+    {
+        return static_cast<GpoRuleConfigured>(powertoys_gpo::getConfiguredNewPlusHideBuiltInNewContextMenuValue());
+    }
 }

src/common/GPOWrapper/GPOWrapper.h

@@ -78,6 +78,7 @@ namespace winrt::PowerToys::GPOWrapper::implementation
         static GpoRuleConfigured GetAllowDataDiagnosticsValue();
         static GpoRuleConfigured GetConfiguredRunAtStartupValue();
         static GpoRuleConfigured GetConfiguredNewPlusReplaceVariablesValue();
+        static GpoRuleConfigured GetConfiguredNewPlusHideBuiltInNewContextMenuValue();
     };
 }
 

src/common/GPOWrapper/GPOWrapper.idl

@@ -82,6 +82,7 @@ namespace PowerToys
             static GpoRuleConfigured GetAllowDataDiagnosticsValue();
             static GpoRuleConfigured GetConfiguredRunAtStartupValue();
             static GpoRuleConfigured GetConfiguredNewPlusReplaceVariablesValue();
+            static GpoRuleConfigured GetConfiguredNewPlusHideBuiltInNewContextMenuValue();
         }
     }
 }

src/common/utils/gpo.h

@@ -103,6 +103,7 @@ namespace powertoys_gpo
     const std::wstring POLICY_MWB_POLICY_DEFINED_IP_MAPPING_RULES = L"MwbPolicyDefinedIpMappingRules";
     const std::wstring POLICY_NEW_PLUS_HIDE_TEMPLATE_FILENAME_EXTENSION = L"NewPlusHideTemplateFilenameExtension";
     const std::wstring POLICY_NEW_PLUS_REPLACE_VARIABLES = L"NewPlusReplaceVariablesInTemplateFilenames";
+    const std::wstring POLICY_NEW_PLUS_HIDE_BUILT_IN_NEW_CONTEXT_MENU = L"NewPlusHideBuiltInNewContextMenu";
 
     // Methods used for reading the registry
 #pragma region ReadRegistryMethods
@@ -700,5 +701,10 @@ namespace powertoys_gpo
         return getConfiguredValue(POLICY_NEW_PLUS_REPLACE_VARIABLES);
     }
     
+    inline gpo_rule_configured_t getConfiguredNewPlusHideBuiltInNewContextMenuValue()
+    {
+        return getConfiguredValue(POLICY_NEW_PLUS_HIDE_BUILT_IN_NEW_CONTEXT_MENU);
+    }
+
 #pragma endregion IndividualModuleSettingPolicies
 }

src/gpo/assets/PowerToys.admx

@@ -1,11 +1,11 @@
 <?xml version="1.0" encoding="utf-8"?>
 <!-- Copyright (c) Microsoft Corporation.
      Licensed under the MIT License. -->
-<policyDefinitions xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" revision="1.19" schemaVersion="1.0" xmlns="http://schemas.microsoft.com/GroupPolicy/2006/07/PolicyDefinitions">
+<policyDefinitions xmlns:xsd="http://www.w3.org/2001/XMLSchema" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" revision="1.20" schemaVersion="1.0" xmlns="http://schemas.microsoft.com/GroupPolicy/2006/07/PolicyDefinitions">
   <policyNamespaces>
     <target prefix="powertoys" namespace="Microsoft.Policies.PowerToys" />
   </policyNamespaces>
-  <resources minRequiredRevision="1.19"/><!-- Last changed with PowerToys v0.97.0 -->
+  <resources minRequiredRevision="1.20"/><!-- Last changed with PowerToys v0.98.0 -->
   <supportedOn>
     <definitions>
       <definition name="SUPPORTED_POWERTOYS_0_64_0" displayName="$(string.SUPPORTED_POWERTOYS_0_64_0)"/>
@@ -28,6 +28,7 @@
       <definition name="SUPPORTED_POWERTOYS_0_90_0" displayName="$(string.SUPPORTED_POWERTOYS_0_90_0)"/>
       <definition name="SUPPORTED_POWERTOYS_0_96_0" displayName="$(string.SUPPORTED_POWERTOYS_0_96_0)"/>
       <definition name="SUPPORTED_POWERTOYS_0_97_0" displayName="$(string.SUPPORTED_POWERTOYS_0_97_0)"/>
+      <definition name="SUPPORTED_POWERTOYS_0_98_0" displayName="$(string.SUPPORTED_POWERTOYS_0_98_0)"/>
       <definition name="SUPPORTED_POWERTOYS_0_64_0_TO_0_87_1" displayName="$(string.SUPPORTED_POWERTOYS_0_64_0_TO_0_87_1)"/>
     </definitions>
   </supportedOn>
@@ -826,5 +827,15 @@
         <decimal value="0" />
       </disabledValue>
     </policy>
+    <policy name="NewPlusHideBuiltInNewContextMenu" class="Both" displayName="$(string.NewPlusHideBuiltInNewContextMenu)" explainText="$(string.NewPlusHideBuiltInNewContextMenuDescription)" key="Software\Policies\PowerToys" valueName="NewPlusHideBuiltInNewContextMenu">
+      <parentCategory ref="NewPlus" />
+      <supportedOn ref="SUPPORTED_POWERTOYS_0_98_0" />
+      <enabledValue>
+        <decimal value="1" />
+      </enabledValue>
+      <disabledValue>
+        <decimal value="0" />
+      </disabledValue>
+    </policy>
   </policies>
 </policyDefinitions>

src/gpo/assets/en-US/PowerToys.adml

@@ -35,6 +35,7 @@
       <string id="SUPPORTED_POWERTOYS_0_90_0">PowerToys version 0.90.0 or later</string>
       <string id="SUPPORTED_POWERTOYS_0_96_0">PowerToys version 0.96.0 or later</string>
       <string id="SUPPORTED_POWERTOYS_0_97_0">PowerToys version 0.97.0 or later</string>
+      <string id="SUPPORTED_POWERTOYS_0_98_0">PowerToys version 0.98.0 or later</string>
       <string id="SUPPORTED_POWERTOYS_0_64_0_TO_0_87_1">From PowerToys version 0.64.0 until PowerToys version 0.87.1</string>
 
       <string id="ConfigureAllUtilityGlobalEnabledStateDescription">This policy configures the enabled state for all PowerToys utilities.
@@ -356,6 +357,15 @@ If you disable this policy, users will not be able to select or use Foundry Loca
       <string id="AllowDiagnosticData">Allow sending diagnostic data</string>
       <string id="ConfigureRunAtStartup">Configure the run at startup setting</string>
       <string id="NewPlusReplaceVariablesInTemplateFilenames">Replace variables in template filenames</string>
+      <string id="NewPlusHideBuiltInNewContextMenu">Hide the built-in "New" context menu</string>
+      <string id="NewPlusHideBuiltInNewContextMenuDescription">This policy configures if Windows' built-in New context menu should be hidden on the context menu.
+
+If you enable this policy, then the built-in New context menu will be hidden, and user can only create new files and folders using New+ and the explorer toolbar New button.
+
+If you disable this policy, then the build-in New context menu will be displayed as normal in Windows.
+
+If you don't configure this policy, the user will be able to control the setting and can enable or disable it.
+</string>        
     </stringTable>
 
     <presentationTable>
@@ -369,4 +379,3 @@ If you disable this policy, users will not be able to select or use Foundry Loca
 
   </resources>
 </policyDefinitionResources>
-

src/modules/NewPlus/NewShellExtensionContextMenu/constants.h

@@ -18,6 +18,8 @@ namespace newplus::constants::non_localizable
     
     constexpr WCHAR settings_json_key_template_location[] = L"TemplateLocation";
 
+    constexpr WCHAR settings_json_key_hide_built_in_new[] = L"BuiltInNewHidePreference";
+
     constexpr WCHAR context_menu_package_name[] = L"NewPlusContextMenu";
 
     constexpr WCHAR msix_package_name[] = L"NewPlusPackage.msix";

src/modules/NewPlus/NewShellExtensionContextMenu/new_utilities.h

@@ -446,4 +446,69 @@ namespace newplus::utilities
 
         return hr;
     }
+
+    constexpr wchar_t built_in_new_registry_path[] = LR"(Software\Classes\Directory\Background\ShellEx\ContextMenuHandlers\New)";
+    constexpr wchar_t built_in_new_registry_disabled_value_prefix[] = L"disabled_";
+
+    inline bool disable_built_in_new_via_registry()
+    {
+        // This is implemented to support where New+ GPO is configured to 
+        // hide the built-in New context menu but Settings UI hasn't been launched
+        // Mirrors the logic in DisableBuiltInNewViaRegistry in .cs
+
+        HKEY key{};
+
+        if (RegCreateKeyExW(HKEY_CURRENT_USER,
+                            built_in_new_registry_path,
+                            0,
+                            nullptr,
+                            REG_OPTION_NON_VOLATILE,
+                            KEY_ALL_ACCESS,
+                            nullptr,
+                            &key,
+                            nullptr) != ERROR_SUCCESS)
+        {
+            return false;
+        }
+
+        const auto built_in_new_registry_disabled_value_prefix_len = lstrlenW(built_in_new_registry_disabled_value_prefix);
+
+        if (RegSetValueExW(key, nullptr, 0, REG_SZ, reinterpret_cast<const BYTE*>(&built_in_new_registry_disabled_value_prefix), built_in_new_registry_disabled_value_prefix_len) != ERROR_SUCCESS)
+        {
+            RegCloseKey(key);
+            return true;
+        }
+
+        RegCloseKey(key);
+        return false;
+
+    }
+
+    inline bool enable_built_in_new_via_registry()
+    {
+        // This is implemented to support where New+ GPO is configured to 
+        // display the built-in New context menu but Settings UI hasn't been launched
+        // Mirrors the logic in EnableBuiltInNewViaRegistry in .cs
+
+        HKEY key{};
+
+        if (RegOpenKeyExW(HKEY_CURRENT_USER,
+                          built_in_new_registry_path,
+                          0,
+                          KEY_ALL_ACCESS,
+                          &key) != ERROR_SUCCESS)
+        {
+            return true;
+        }
+
+        if (RegDeleteValueW(key, nullptr) != ERROR_SUCCESS)
+        {
+            RegCloseKey(key);
+            return true;
+        }
+
+        RegCloseKey(key);
+        return false;
+
+    }
 }

src/modules/NewPlus/NewShellExtensionContextMenu/powertoys_module.cpp

@@ -172,7 +172,22 @@ private:
     void init_settings()
     {
         powertoy_new_enabled = NewSettingsInstance().GetEnabled();
+
         UpdateRegistration(powertoy_new_enabled);
+
+        if (powertoy_new_enabled)
+        {
+            // NOTE: This requires that the runner is running and have loaded the new plus module.
+            // It's not enough for user to just invoke the context menu.
+            if (NewSettingsInstance().GetHideBuiltInNew())
+            {
+                newplus::utilities::disable_built_in_new_via_registry();
+            }
+            else
+            {
+                newplus::utilities::enable_built_in_new_via_registry();
+            }
+        }
     }
 };
 

src/modules/NewPlus/NewShellExtensionContextMenu/settings.cpp

@@ -45,6 +45,7 @@ void NewSettings::Save()
     values.add_property(newplus::constants::non_localizable::settings_json_key_hide_starting_digits, new_settings.hide_starting_digits);
     values.add_property(newplus::constants::non_localizable::settings_json_key_replace_variables, new_settings.replace_variables);
     values.add_property(newplus::constants::non_localizable::settings_json_key_template_location, new_settings.template_location);
+    values.add_property(newplus::constants::non_localizable::settings_json_key_hide_built_in_new, new_settings.hide_built_in_new_preference);
 
     values.save_to_settings_file();
 
@@ -75,6 +76,9 @@ void NewSettings::InitializeWithDefaultSettings()
     SetReplaceVariables(false);
 
     SetTemplateLocation(GetTemplateLocationDefaultPath());
+
+    // By default we show the built-in New context menu
+    SetHideBuiltInNew(false);
 }
 
 void NewSettings::RefreshEnabledState()
@@ -149,6 +153,12 @@ void NewSettings::ParseJson()
         new_settings.replace_variables = resolveVariables.value();
     }
 
+    const auto hideBuiltInNewValue = settings.get_bool_value(newplus::constants::non_localizable::settings_json_key_hide_built_in_new);
+    if (hideBuiltInNewValue.has_value())
+    {
+        new_settings.hide_built_in_new_preference = hideBuiltInNewValue.value();
+    }
+
     GetSystemTimeAsFileTime(&new_settings_last_loaded_timestamp);
 }
 
@@ -239,6 +249,26 @@ std::wstring NewSettings::GetTemplateLocationDefaultPath() const
     return full_path;
 }
 
+bool NewSettings::GetHideBuiltInNew()
+{
+    const auto gpoSetting = powertoys_gpo::getConfiguredNewPlusHideBuiltInNewContextMenuValue();
+    if (gpoSetting == powertoys_gpo::gpo_rule_configured_enabled)
+    {
+        return true;
+    }
+    else if (gpoSetting == powertoys_gpo::gpo_rule_configured_disabled)
+    {
+        return false;
+    }
+
+    return new_settings.hide_built_in_new_preference;
+}
+
+void NewSettings::SetHideBuiltInNew(const bool hide_built_in_new)
+{
+    new_settings.hide_built_in_new_preference = hide_built_in_new;
+}
+
 NewSettings& NewSettingsInstance()
 {
     static NewSettings instance;

src/modules/NewPlus/NewShellExtensionContextMenu/settings.h

@@ -16,6 +16,8 @@ public:
     void SetReplaceVariables(const bool resolve_variables);
     std::wstring GetTemplateLocation() const;
     void SetTemplateLocation(const std::wstring template_location);
+    bool GetHideBuiltInNew();
+    void SetHideBuiltInNew(const bool hide_built_in_new);
 
     void Save();
     void Load();
@@ -29,6 +31,7 @@ private:
         bool hide_starting_digits{ true };
         bool replace_variables{ true };
         std::wstring template_location;
+        bool hide_built_in_new_preference{ false };
     };
 
     void RefreshEnabledState();

src/settings-ui/Settings.UI.Library/NewPlusProperties.cs

@@ -19,6 +19,7 @@ namespace Microsoft.PowerToys.Settings.UI.Library
             HideStartingDigits = new BoolProperty(true);
             TemplateLocation = new StringProperty(Path.Combine(Environment.GetFolderPath(Environment.SpecialFolder.LocalApplicationData), "Microsoft", "PowerToys", "NewPlus", "Templates"));
             ReplaceVariables = new BoolProperty(false);
+            BuiltInNewHidePreference = new BoolProperty(false);
         }
 
         [JsonPropertyName("HideFileExtension")]
@@ -33,6 +34,9 @@ namespace Microsoft.PowerToys.Settings.UI.Library
         [JsonPropertyName("ReplaceVariables")]
         public BoolProperty ReplaceVariables { get; set; }
 
+        [JsonPropertyName("BuiltInNewHidePreference")]
+        public BoolProperty BuiltInNewHidePreference { get; set; }
+
         public override string ToString() => JsonSerializer.Serialize(this, SettingsSerializationContext.Default.NewPlusProperties);
     }
 }

src/settings-ui/Settings.UI/SettingsXAML/Views/NewPlusPage.xaml

@@ -69,8 +69,8 @@
                                 IsOn="{x:Bind ViewModel.HideFileExtension, Mode=TwoWay}" />
                         </tkcontrols:SettingsCard>
                     </controls:GPOInfoControl>
-                    <tkcontrols:SettingsCard Name="NewPlusHideStartingDigitsToggle" x:Uid="NewPlus_Hide_Starting_Digits_Toggle">
 
+                    <tkcontrols:SettingsCard Name="NewPlusHideStartingDigitsToggle" x:Uid="NewPlus_Hide_Starting_Digits_Toggle">
                         <ToggleSwitch
                             x:Uid="HideStartingDigitsToggle"
                             AutomationProperties.Name="{Binding ElementName=NewPlusHideStartingDigitsToggle, Path=Header}"
@@ -79,6 +79,15 @@
                             <TextBlock x:Uid="NewPlus_Hide_Starting_Digits_Description" />
                         </tkcontrols:SettingsCard.Description>
                     </tkcontrols:SettingsCard>
+
+                    <controls:GPOInfoControl ShowWarning="{x:Bind ViewModel.IsNewPlusHideBuiltInNewToggleSettingGPOConfigured, Mode=OneWay}">
+                        <tkcontrols:SettingsCard x:Uid="NewPlusHideBuiltInNewToggle" IsEnabled="{x:Bind ViewModel.IsDisableBuiltInNewSettingsCardEnabled, Mode=OneWay}">
+                            <ToggleSwitch
+                                x:Uid="HideBuiltInNewToggle"
+                                AutomationProperties.Name="{Binding ElementName=NewPlusHideBuiltInNewToggle, Path=Header}"
+                                IsOn="{x:Bind ViewModel.HideBuiltInNew, Mode=TwoWay}" />
+                        </tkcontrols:SettingsCard>
+                    </controls:GPOInfoControl>
                 </controls:SettingsGroup>
 
                 <controls:SettingsGroup x:Uid="NewPlus_behavior" IsEnabled="{x:Bind ViewModel.IsEnabled, Mode=OneWay}">

src/settings-ui/Settings.UI/Strings/en-us/Resources.resw

@@ -4382,6 +4382,10 @@ Activate by holding the key for the character you want to add an accent to, then
     <value>Ignores digits, spaces, and dots at the start of filenames—useful for sorting templates without showing those characters</value>
     <comment>Template filename starting digits settings toggle</comment>
   </data>
+  <data name="NewPlusHideBuiltInNewToggle.Header" xml:space="preserve">
+    <value>Hide the built-in "New" context menu</value>
+    <comment>Localize New in accordance with Windows New</comment>
+  </data>
   <data name="NewPlus_behavior.Header" xml:space="preserve">
     <value>Behavior</value>
     <comment>New+ behavior related settings label</comment>

src/settings-ui/Settings.UI/ViewModels/NewPlusViewModel.cs

@@ -9,6 +9,7 @@ using System.IO;
 using System.Text.Json;
 using System.Threading.Tasks;
 using System.Windows;
+
 using global::PowerToys.GPOWrapper;
 using ManagedCommon;
 using Microsoft.PowerToys.Settings.UI.Library;
@@ -17,7 +18,7 @@ using Microsoft.PowerToys.Settings.UI.Library.Interfaces;
 using Microsoft.PowerToys.Settings.UI.Library.Utilities;
 using Microsoft.PowerToys.Settings.UI.Library.ViewModels.Commands;
 using Microsoft.PowerToys.Settings.UI.SerializationContext;
-
+using Microsoft.Win32;
 using static Microsoft.PowerToys.Settings.UI.Helpers.ShellGetFolder;
 
 namespace Microsoft.PowerToys.Settings.UI.ViewModels
@@ -32,6 +33,10 @@ namespace Microsoft.PowerToys.Settings.UI.ViewModels
 
         private const string ModuleName = NewPlusSettings.ModuleName;
 
+        private const string BuiltInNewRegistryPath = @"Software\Classes\Directory\Background\ShellEx\ContextMenuHandlers\New";
+        private const string BuiltNewCOMGuid = "{D969A300-E7FF-11d0-A93B-00A0C90F2719}";
+        private const string NewDisabledValuePrefix = "disabled_";
+
         public NewPlusViewModel(SettingsUtils settingsUtils, ISettingsRepository<GeneralSettings> settingsRepository, Func<string, int> ipcMSGCallBackFunc)
         {
             _settingsUtils = settingsUtils ?? throw new ArgumentNullException(nameof(settingsUtils));
@@ -51,6 +56,8 @@ namespace Microsoft.PowerToys.Settings.UI.ViewModels
             InitializeEnabledValue();
             InitializeGpoValues();
 
+            _disableBuiltInNew = !IsBuiltInNewEnabled();
+
             // set the callback functions value to handle outgoing IPC message.
             SendConfigMSG = ipcMSGCallBackFunc;
         }
@@ -76,6 +83,10 @@ namespace Microsoft.PowerToys.Settings.UI.ViewModels
             _hideFileExtensionGpoRuleConfiguration = GPOWrapper.GetConfiguredNewPlusHideTemplateFilenameExtensionValue();
             _hideFileExtensionIsGPOConfigured = _hideFileExtensionGpoRuleConfiguration == GpoRuleConfigured.Disabled || _hideFileExtensionGpoRuleConfiguration == GpoRuleConfigured.Enabled;
 
+            // Policy for Hide Built-in New toggle setting
+            _hideBuiltInNewContextMenuToggleSettingGPOConfigured = GPOWrapper.GetConfiguredNewPlusHideBuiltInNewContextMenuValue() == GpoRuleConfigured.Enabled
+                                                    || GPOWrapper.GetConfiguredNewPlusHideBuiltInNewContextMenuValue() == GpoRuleConfigured.Disabled;
+
             // Same for Replace Variables
             _replaceVariablesIsGPOConfigured = GPOWrapper.GetConfiguredNewPlusReplaceVariablesValue() == GpoRuleConfigured.Enabled
                                                     || GPOWrapper.GetConfiguredNewPlusReplaceVariablesValue() == GpoRuleConfigured.Disabled;
@@ -96,6 +107,8 @@ namespace Microsoft.PowerToys.Settings.UI.ViewModels
                     OnPropertyChanged(nameof(IsHideFileExtSettingGPOConfigured));
                     OnPropertyChanged(nameof(IsReplaceVariablesSettingGPOConfigured));
                     OnPropertyChanged(nameof(IsReplaceVariablesSettingsCardEnabled));
+                    OnPropertyChanged(nameof(IsDisableBuiltInNewSettingsCardEnabled));
+                    OnPropertyChanged(nameof(IsNewPlusHideBuiltInNewToggleSettingGPOConfigured));
 
                     OutGoingGeneralSettings outgoingMessage = new OutGoingGeneralSettings(GeneralSettingsConfig);
                     SendConfigMSG(outgoingMessage.ToString());
@@ -106,6 +119,14 @@ namespace Microsoft.PowerToys.Settings.UI.ViewModels
                     {
                         CopyTemplateExamples(_templateLocation);
                     }
+                    else
+                    {
+                        // Re-enable built-in New handler when NewPlus is disabled if allowed by GPO
+                        if (!IsNewPlusHideBuiltInNewToggleSettingGPOConfigured)
+                        {
+                            EnableBuiltInNewViaRegistry();
+                        }
+                    }
                 }
             }
         }
@@ -164,6 +185,10 @@ namespace Microsoft.PowerToys.Settings.UI.ViewModels
 
         public bool IsReplaceVariablesSettingGPOConfigured => _isNewPlusEnabled && _replaceVariablesIsGPOConfigured;
 
+        public bool IsDisableBuiltInNewSettingsCardEnabled => _isNewPlusEnabled && !_hideBuiltInNewContextMenuToggleSettingGPOConfigured;
+
+        public bool IsNewPlusHideBuiltInNewToggleSettingGPOConfigured => _isNewPlusEnabled && _hideBuiltInNewContextMenuToggleSettingGPOConfigured;
+
         public bool HideStartingDigits
         {
             get => _hideStartingDigits;
@@ -206,6 +231,48 @@ namespace Microsoft.PowerToys.Settings.UI.ViewModels
             }
         }
 
+        public bool HideBuiltInNew
+        {
+            get
+            {
+                if (IsNewPlusHideBuiltInNewToggleSettingGPOConfigured)
+                {
+                    return GPOWrapper.GetConfiguredNewPlusHideBuiltInNewContextMenuValue() == GpoRuleConfigured.Enabled;
+                }
+
+                return _disableBuiltInNew;
+            }
+
+            set
+            {
+                if (IsNewPlusHideBuiltInNewToggleSettingGPOConfigured)
+                {
+                    value = GPOWrapper.GetConfiguredNewPlusHideBuiltInNewContextMenuValue() == GpoRuleConfigured.Enabled;
+                }
+
+                if (_disableBuiltInNew != value)
+                {
+                    // Update New visibility right now
+                    if (_disableBuiltInNew)
+                    {
+                        EnableBuiltInNewViaRegistry();
+                    }
+                    else
+                    {
+                        DisableBuiltInNewViaRegistry();
+                    }
+
+                    _disableBuiltInNew = value;
+                    OnPropertyChanged(nameof(HideBuiltInNew));
+
+                    // Set the user preference for New visibility, which we then also use in powertoys_module.cpp to ensure
+                    // that backup/restore of settings work without having to update settings
+                    Settings.Properties.BuiltInNewHidePreference.Value = value;
+                    NotifySettingsChanged();
+                }
+            }
+        }
+
         public bool IsEnabledGpoConfigured
         {
             get => _enabledStateIsGPOConfigured;
@@ -271,12 +338,14 @@ namespace Microsoft.PowerToys.Settings.UI.ViewModels
         private bool _hideFileExtension;
         private bool _hideStartingDigits;
         private bool _replaceVariables;
+        private bool _disableBuiltInNew; // reflects the current state of New visibility
 
         private GpoRuleConfigured _enabledGpoRuleConfiguration;
         private bool _enabledStateIsGPOConfigured;
         private GpoRuleConfigured _hideFileExtensionGpoRuleConfiguration;
         private bool _hideFileExtensionIsGPOConfigured;
         private bool _replaceVariablesIsGPOConfigured;
+        private bool _hideBuiltInNewContextMenuToggleSettingGPOConfigured;
 
         public void RefreshEnabledState()
         {
@@ -317,5 +386,87 @@ namespace Microsoft.PowerToys.Settings.UI.ViewModels
             var hwnd = WinRT.Interop.WindowNative.GetWindowHandle(App.GetSettingsWindow());
             return await Task.FromResult(GetFolderDialogWithFlags(hwnd, FolderDialogFlags._BIF_NEWDIALOGSTYLE));
         }
+
+        private bool IsBuiltInNewEnabled()
+        {
+            try
+            {
+                using (var newKey = Registry.CurrentUser.OpenSubKey(BuiltInNewRegistryPath, writable: false))
+                {
+                    string builtInNewHandlerValue = newKey.GetValue(null, null) as string;
+
+                    if (builtInNewHandlerValue is null || string.Equals(builtInNewHandlerValue, BuiltNewCOMGuid, StringComparison.OrdinalIgnoreCase))
+                    {
+                        // If no default value for key, or GUID is BuiltNewCOMGuid then built-in New is enabled
+                        return true;
+                    }
+
+                    return false;
+                }
+            }
+            catch (Exception ex)
+            {
+                Logger.LogError("Failed to determine built-in New enablement status.", ex);
+            }
+
+            return false;
+        }
+
+        private void DisableBuiltInNewViaRegistry()
+        {
+            try
+            {
+                using (var newKey = Registry.CurrentUser.OpenSubKey(BuiltInNewRegistryPath, writable: true))
+                {
+                    string builtInNewHandlerValue = newKey.GetValue(null, null) as string;
+
+                    if (!string.IsNullOrEmpty(builtInNewHandlerValue) && builtInNewHandlerValue.StartsWith(NewDisabledValuePrefix, StringComparison.OrdinalIgnoreCase))
+                    {
+                        // Already disabled
+                        return;
+                    }
+
+                    // Any string value will disable the built-in New handler
+                    string newDisabledValue = NewDisabledValuePrefix + builtInNewHandlerValue;
+                    newKey.SetValue(string.Empty, newDisabledValue);
+                }
+
+                HideBuiltInNew = true;
+                OnPropertyChanged(nameof(HideBuiltInNew));
+            }
+            catch (Exception ex)
+            {
+                Logger.LogError("Failed to disable built-in New in the registry.", ex);
+                MessageBox.Show(ex.Message);
+            }
+        }
+
+        private void EnableBuiltInNewViaRegistry()
+        {
+            try
+            {
+                using (var newKey = Registry.CurrentUser.OpenSubKey(BuiltInNewRegistryPath, writable: true))
+                {
+                    string builtInNewHandlerValue = newKey.GetValue(null, null) as string;
+
+                    if (builtInNewHandlerValue is null)
+                    {
+                        // Already enabled
+                        return;
+                    }
+
+                    // Null key default value enables built-in New handler
+                    newKey.DeleteValue(null, true);
+                }
+
+                HideBuiltInNew = false;
+                OnPropertyChanged(nameof(HideBuiltInNew));
+            }
+            catch (Exception ex)
+            {
+                Logger.LogError("Failed to enable built-in New in the registry.", ex);
+                MessageBox.Show(ex.Message);
+            }
+        }
     }
 }