When we open cloudshell editor, a file is already created for us and we can save it. Once we save it , how can we create a new file? If we close the editor and open it again, then the same saved file is visible.
Restarting cloud shell or opening a new session helps but is that the only way to achieve this ?
If you want to create new file in Azure cloud shell editor, you can run code <filename> to open the editor without the file explorer and create a new file. If you want to remove the file, you can run rm -r <filename> in the BASH.
See Using the Azure Cloud Shell editor for more details. Let me know if I misunderstand your question.