GitHub Actions is not permitted to create or approve pull requests (createPullRequest)

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Since the 3rd of May this month, github added the setting Allow GitHub Actions to create and approve pull requests for creating pull requests in github actions, under Settings > Actions > General. However, it seems I cannot select this option for my repo, it is grayed out without any explanation why it is grayed out.

Whenever the "default permissions" setting is changed and saved, it is possible to select the Allow GitHub Actions to create and approve pull requests, but if it is saved it snaps back to the original grayed out version, unchecked.

I also tried giving the workflow file the pull-request permission like so:

permissions:
   pull-requests: write

but that didn't work either. Is there something I am missing which prevents me from using pull requests within github actions?

'Allow GitHub Actions to create and approve pull requests' setting Failing GitHub Actions PR creation

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