"New Launch" or "Newly Launched"

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Himanshu Sindhi

Senior Member
This question was asked in an exam in India as ...
Which part of the sentence has an error :-

You can eat (1)/as much as you like (2)/at the newly launch bar. (3)/ No error. (4)

I think "newly launched" is the correction, but some book says "new" will replace "newly" because "newly" is adverb and "new" is adjective.
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