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With mbr partitioning you are allowed 4 primary or 3 primary and one extended partition. The logical partitions are created inside the extended partition. You can't split the extended partition with a primary as you are trying to do (with the C volume). See How Basic Disks and Volumes Work: Storage Services
You could move the C volume to the left next to the system reserved - then it would work.
You do but all your logical partitions must be next to each other not with a primary in the middle
You can move partitions using the same tool - it is explained here How to Move/Resize Partition | MiniTool Partition Wizard Tutorial
Correct. After the move is complete you should then be able to create a new logical partition within the extended partition.
If you need a larger new partition than what is in the unallocated space, you can also now shrink the C: drive partition taking space from the front to add to the partition in front of it.