Yes, the menus were modified so that all the 2D stuff was on a “2D” sub-menu. This menu is only around when the 2D Sprite Package is installed. Unfortunately the PhysicsMaterial2D was moved there too which means you cannot create one from that menu unless the Sprite Package is installed which is a bug. I reported this and it’s being fixed and you can track its progress here.
In the meantime, as a workaround, simply added the 2D Sprite Package will make the menu appear.