Can't modify the Finder sidebar?

For years I have used the sidebar. Added shortcuts to files, folders and whatnot.

However, I currently have a 1 year old iMac - not mine - (sequoia updated this morning) that will not let me modify the sidebar. All it contains is an iCloud link and a column of coloured tags. No drives, folders or anything useful.

This is the same iMac as in my other post today.

What happens when you go to Finder>Settings>Sidebar? Can you select/deselect the items?