I cannot use my shovel or open up a separate window to dig a hole by the dead tree in the end. Has..

I think you are in Episode 2. You may not have found the clue to the location, sometimes in these games you need to find the clue before it will let you access the location. Look in the jail cell that you released the cowboy from and tap on the paper on the wall to look at it. Then try the tree again.