Does the value for either ‘Initialize variable’ action include dynamic content from the Get items action that precedes it?
Also, what value do you have in the ‘From’ field in the ‘Apply to each’ actions? Are you using dynamic content from the ‘Get Items’ action or from the ‘Initialize variable’ action?
I can better assist if I know the answers to these questions. However, in either case, the reason that the create item is greyed out is because the inputs returned a null value, so there was no data to create a new item with.