Has the politically correct atmosphere created a generation incapable of making decisions?

Sorry, none of the above. I can't see a relationship between political correctness and the ability to make a decision. Well, maybe just one: Cowardice vs Courage. Political correctness is the restriction of free speech. Yes, it's just that simple. Making a decision requires courage (which is why I convinced, after looking at Barack Obama's voting record as a state legislator and a member of Congress, he is a moral coward). Interestingly, it takes courage to speak freely in a politically correct world. Sadly, I don't think this relates to your question which is why I can't find a place for my response among the choices you offer

No, decisions can and have been made. The "PC" issue/problem is that people are hampered when trying to explain reasoning behind those decisions.

I don't think political correctness is the cause. I think it is a symptom. I think the idea that parents engrain in their kids about how they are special and amazing no matter what they do causes a lot of this. Kids today are told basically what the answer is instead of figuring it out for themselves. A good example is parents yelling at teachers for "giving" their kid a bad grade instead of asking the kid why they earned the bad grade. So they don't know how to fail and in the absence of an immediate definitive answer, they tend to be indecisive. Granted this does not apply to every Millennial but seems to be a common trait.