Gnomes Nautilus foolishly ties in that functionality to the default Templates folder in the Home Directory. This also is the reason that I cannot keep any of my actual templates in the Templates Folder and have to make separate ones.
Ensure that you have a ~/Templates directory. If you do not, then make one:
mkdir ~/Templates
Then,
touch ~/Templates/Text\ File.txt
That references this post:
Upon opening the Guide in the link, you would continue from this line:
Then go to “/usr/share/X11/xorg.conf.d” and add one of the files below for your graphics card.