Microsoft did everything right. Nobody noticed that there are only primary partitions on the disk, there are exactly four of them, there cannot be more basic partitions (on an MBR disk). The extended partition also cannot be created at this time due to the same limitation. Several possible solutions:
- two partitions would have to be embedded as logical partitions in the extended partition created. A partitioning program can help with this (e.g. gparted should be able to handle this), but while such changes are possible, I don't recommend them.
- what's on the last small partition? There is no letter assigned. If you are not using it, you can delete it, then from all the space you can partition from all the free space.
- the solution that I would choose - the simplest and probably the safest - expand partition D with available free space, you will have one large partition instead of two small ones. It is even more convenient in my opinion, the more that there is already a separate partition for the system.