As Administrator: Had a folder named "Folder A\Folder B". Made a new folder named "Folder B\Folder B". Deleted "Folder A\Folder B".
Now in any folder, a single user, does not have any templates loaded as options on RMB,New. The single user does have RMB,New, Folder listed but not the usual Templates also.
Yes, I checked the folder permissions, they look correct. Nothing with this user changed. Only folder creation and deletion by Administrator.