Reason - news_menu_template.php under theme doesn't have template for carousel. Why I supposed that e107 adds theme templates to core? Oh, because on some places it adds and on some not. So again no rules! Frankly I am tired of this. So just copy NEWS_MENU_TEMPLATE[carousel] from news plugin templates and add it to theme template.
On other side - it's not there, so it's not styled neither. I hope you changed theme name otherwise it will be override with next update.