Hi Jetj25,
I've reproduced your issue successfully:

It seems that your current user has not sufficient privilege to access dynamic content,
so you should ask your admin to give you privileges to below 3 items:
> Content settings
> Dynamic-content metadata

> Marketing email dynamic-content metadata

I couldn't give you specific anwser that which item will finally lead the drop-down menu to be blocked,
however, after I disabled all of 3 items, the drop-down menu was actually blocked to greyed out,
you could try them one by one.
Regards,
Clofly