Different options in Explorer menu

I’m following Mosh’s “Complete Python Mastery” course and I’m on the 5th video. About 30 seconds into the video, he clicks on the explorer tab to add a new file (app.py). My VS code installation is new. But when I click on the explorer tab, I get a different menu then the video shows. Can someone explain what to do get to the area he’s at so I can create my new (app.py) file? Also, I am on Windows. Thank you.

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Edit: So I figured it out. For anyone reading this, VS Code doesn’t seem to create a folder for you. After noticing it was trying to pull from a certain folder in my computer, I went there and manually created one. Then I closed VS Code out, and re-opened it and I could find the folder I had just created in order to continue. I hope this helps someone.