The problem was that the instructor (online course) showed the features. He has Wacom and students didn't. When I brought up the greyed out menu to him, he didn't relate my concern with the fact that mouse doesn't trigger those features to be on. He just replied he will look into it. I thought it was to do with my installation / setup.
Later I managed to have a chat session with Adobe tech support and they confirmed those features are only on when Ai recognizes Wacom.