The version of Windows on my computer was Windows 10 Professional Insider Preview.
I am getting out although I wanted to see the new stuff with the Insiders version, but became impossible to work with the desktop. Everything hung up or was so slow to load, I felt excruciating pain looking at the hung programs.
I decided to revert back using system restore and now I see that the right click on icons are behaving OK and I do have the pick list fully populated.
I am back to OS Build: 16278.1000 and version 1703.