Martin, actually, the screenshot did include the (Environment/Confirmations) settings and you're right, I failed to select the Moving files to Recycle bin box there. However, Local >> Delete files to Recycle bin was checked off as the screenshot shows.
The problem is that, although that option was checked, it didn't move deleted local files to the local recycle bin. I now did check the Confirmations >> Moving files to Recycle bin box but unfortunately, even though I am now asked to confirm the delete to the Recycle bin, the deleted (local) file still does not show up in my notebook's recycle bin so it seems like I am still no further ahead.
The question therefore stands, what other setting(s) have to be changed to delete local files to my local recycle bin.
BTW, the delete confirmation box for Windows 10 is activated
Looking forward to a solution to this. Thanks