How do we disable the creation of the "automatically" created work items when new project area is created.
I do not want these default work items to be created.

Thanks
~Henna

Open Project Area --> Process Configuration tab --> Project Configuration --> Project Area Initialization --> Server follow-up actions --> Setup Project ...
The 'Setup Project' follow-up action is where the work items initially created are defined. You can delete all existing 'Work item templates' there (or add others if wanted).
Then if you extract the Process Template from the Project Area, and create a new Project Area based on the new Process Template, no work item should be created on initialization.

If you want to change the Process Template directly, do same as above but by editing the Process Template itself ('Process Templates' view)