since updating to catalina I cannot save "new folder" to HD -option is grey - help!

since updating to catalina I cannot save "new folder" to HD -option is grey - help! After the update I couldn't find any of my folders/files - panic stricken I slowly searched and found them on the desktop in a fold called "relocated items". Now I am unable to create new folders or New Folder with Selection. I have everything on my desktop, don't like working like this. How do I create folders on the HD and fix this situations?