Edit “New” menu in Teams

In a SharePoint document library or Team site, the “Edit New menu” option is conveniently located within the [+] New drop-down list.

You have the flexibility to refine the content types displayed in the [+] New drop-down list. This involves adding frequently used content types or excluding unnecessary ones by clicking the “Edit New menu” (pencil) option. Be sure to save any changes made. 

Additionally, you can click the [+] Add template option to add templates you’ve created to make them available from the drop-down list.