No, VS Professtional can create Cloud application, i guess there's something wrong with your developing environment, you mentioned that the Cloud folder is under the "VWDExpress\ProjectTemplates\CSharp", would you like to try open
VWD and see if VWD can create cloud application?
Another thing is does your Visual Studio has been installed completely? If not, i suggest you consider to repair it and select "fully installation".
BR,
Arwind
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