I’m having the same problem, which started today. Went to shred the recycle bin files, only to find the option had randomly disappeared.
I removed AVG using AVG Clear, reinstalled, restarted… still missing.
The Context Menu option in AVG is enabled, so I can’t see any reason for it not to be there.
Such a stupid problem, most likely with a very easy fix that AVG doesn’t seem to be doing anything about.