The New Version option is like Xdraft; however, the added benefit is the version control. Once a document has been created as a new version, the original cannot be edited only viewed (read-only).
Click on the 3 horizontal dots (ellipsis) for the item to be created as a New Version.
Click on New Version.
Edit text as required.
Click the Ok button.
The new item has been created in the file history, V.00 and V.01 has been added automatically. V.00 can still be viewed but not edited.