New local branches are created via Create Branch dialog which can be started in three ways:
from the Team menu group in the context menu of the project in the project explorer:
from GIT Repositories view:
or
from the History view:
To create a new branch, please follow these steps.
You can create a local branch that is based on some source branch (in this case, you have to click Select... and choose the necessary branch in the opened window):
Most developers use remote tracking branches as a source for their local ones but in theory, you can base your local branch on any branch or commit in the repository. However, it is better not to select local branches to be a source one if you work with a remote repository.
Local branches can be based not only on other branches but also on commits.
To base a local branch on a commit, you need to start the Create Branch dialog in the History view↑ by right-clicking the necessary commit:
In this case, the Create Branch dialog is shorter as you have only to specify the name of the branch and choose whether to check it out or not.
Upstream configuration is useful if you work with remote repositories, especially, for pulling.