Need to connect to M365 via PowerShell to enable it. It will take some times (1 hour) to be ready. Then you could go back to the GUI to setup.
Connect M365 via PowerShell
PS C:\Windows\system32> Import-Module ExchangeOnlineManagement PS C:\Windows\system32> Connect-ExchangeOnline -UserPrincipalName navin@contoso.com
PS C:\Windows\system32> Enable-OrganizationCustomization
The output may display “This operation is not required. Organization is already enabled for customization.”. It is okay and just wait an hour for it to be completed.