'Create New File' CallOut doesn't appear OnClick of 'New' Command Bar Action in Document Library

Existing or New Document Library Command Bar Action 'New' does NOT show up 'Create a new  File' Call Out Menu like below in SharePoint 2016 On-premises Farm. Is this the expected behavior?

To note, from Ribbon --> 'FILES' tab the 'Folder' action is enabled.

Instead the above Dialog opens up OnClick of 'New' button in Document Library Command BarFolder Option is Enabled @ Document Library Level