The word branch is misleading. In Editor 1 you can create a “New Branch” but what that essentially is is a Git clone of whatever content you have in your master branch in the repository hosted on our servers. Since New Branch had nothing to do with actual Git branches we decided to remove that “feature” in Editor 2. In Editor 2 you’ll always get a clone of the master branch of the repository and that’s it.
If you actually want to create a proper branch in Editor 1 or 2 you need to use an external Git tool.
Have you ever chosen to Synchronise your project in Editor 1?