Right click a fence, choose View > Lock Fences. Make sure it is unchecked. This may fix your issue. I had this myself in a different thread, and the documentation does not state what the locking really does anywhere.
nikhilnet
So, I ended up fixing this myself - a reinstall by itself did not correct it. Then I found locking the fences and unlocking them did the trick. Very odd, and probably should be better documented somewhere that locking fences will also block creation of new ones.
When I draw a rectangle on my desktop, it does not offer me the option to create a fence like it used to. This is on Win10 x64 with all updates on a single monitor setup. I see the right-click option for Configure Fences, and that pops up the dialog box. All the options work as expected, but I just can't create new fences. Any ideas?