TextEdit on macOS is a basic text editor used to read and write text files with basic or no formatting.
Issue : Not able to save .txt text file with no formatting in TextEdit
Description : When you try and save using TextEdit there is no option to save as a .txt file
Resolution : For a file that is currently opened you need to select Format > Make Plain Text
For a long term solution, select TextEdit > Preferences… then change Format from Rich text to Plain text
This will ensure that the save dialog will allow the file to be saved as a plain text (.txt) file