This is a weird one....UI is not showing the option. My apologies for the mix-up and a bug report has already been filed...we are working to have this issue resolved as soon as possible.
In the meantime you can directly link to the Create Snippet Function by using the following link
<tt>your-baseurl</tt>/source/snippet/create
This will take you to the create snippet page and then everything will work as described under:
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