Hey @Milind,
The new agent branch picker only chooses an existing branch to start from, so Create Branch isn’t there today. It’s only in the picker under the prompt once the agent has started, and it works from any branch, not just main.
To start on a fresh branch for now, create it first (for example git switch -c my-branch) and then pick it in the new agent picker. You can also ask the agent to create and switch to it in your first message.
I’ll move this to Feature Requests so we can track interest. If anyone else wants it, chime in here.