"Generate Background” option greyed out in Photoshop 2024 even with an active selection.

Hi everyone,

I’m facing a strange issue in Photoshop 2024. The Generate Background option under Generative Fill stays greyed out even when I have a clear selection active with the lasso tool. Generative Fill itself works if I type a prompt, but the specific “Generate Background” shortcut never becomes clickable.

I’ve checked that I’m signed into Creative Cloud, internet is working, and GPU acceleration is enabled. I also reset preferences and tried a fresh document with a simple subject cut out, but the option still does not activate. I’m on Windows 10 with the latest Photoshop update.

Has anyone run into this where Generative Fill works but the Generate Background option refuses to enable? I’m wondering if this is tied to document size, color mode, or some hidden requirement I’m missing.