[Theme Horse Support Team]

Hi AriellebarnettgQA,

We have moved the Theme Options settings to Customizer as of WordPress.org guidelines where you can customize or modify appearance settings in a live Preview.
Now We cannot create any themes with theme options settings as before. All new and old themes of wordpress.org will not be able to have theme options settings and it is WordPress.org guidelines which all the theme author have to follow.

Now you have to make a compatible with new version without theme-options.php.
If you don’t want to update to latest version then you can move back to previous version as well.

Thank you!