Displacement setting is gray when creating new material

I changed the script, under where it says Script/Engine.RendererSettings, enter these two lines of code directly beneath with no indentations or spaces: r.Nanite.AllowTessellation=1 and r.Nanite.Tessellation=1.

Therefore the displacement option shows up, however, it is gray for some reason. What should I do to resolve it?

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I am using UE5 V5.4.3.

same, any fix?

What you need to do is enable tessellation in the material details setting and install the Nanite displaced mesh plugin.
Not my solution but it looks like they changed some things. Here is the link to the proper solution
Nanite tesselation broken in UE5.4 (github) - Development / Rendering - Epic Developer Community Forums (unrealengine.com)

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