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Unable to create email templates - Won't recognize category

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We recently started using sequences, and in creating marketing emails for this, we've run into a problem. My team was able to create email templates in our UAT environment, but now that we're in production, all of us (even me as the admin) are getting this weird error. When we try to create an email template, the form below pops up, with /user/ defaulted as the category. When you try and change that category, it blanks it out then says it's required. Then you try and select it again, and it's like, grey-ed out, and still gives you this error. If you try to click create it doesn't do anything, just shows the error. Any ideas of some setting I've missed? Or should I submit a ticket?