Simple way to make selection transparent - something changed

I am a long-time but only occasional user of Photohop (current version Windows 10 CC 20.0.4). I am not doing sophisticated stuff - just quick image manipulation for websites and marketing. For years I have had a super quick workflow to create transparent images - I use the Magic Wand tool to select the area that I want to make transparent, and hit the delete key. Fast and easy.

So... I need to do this right now, and suddenly when I hit delete, a new window pops up - Fill. Lots of choices, but none of them are Transparent. I tried Googling it and found an article that said to select "Foreground Color," and then Mode- Clear. But as far as I can tell, no matter what choice I make for Color, Clear is never an option.

Needless to say this is incredibly frustrating. I don't understand why such a simple keystroke has vanished! And I need this image today... So - I really appreciate help and also realize that as I'm basically a beginner and basic user, I need very explicit instructions. Thank you!