Get button in found image greyed out?

No. According to the error message you reported above, KM is unable to find a unique image, which means there should be multiple similar buttons on screen.

To get a better picture of what is going on, I wanted to see the those buttons, to see how similar they are. That is, a screenshot that shows what KM sees.

Another thing:

In your screenshot above, the fuzziness slider is set all to the right(!) This is not exactly what I meant as I said “play around with the fuzziness slider”. With this setting it will be very hard for KM to find unique images.

Start again with the default setting, which is something like this:

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In order to avoid that KM considers similar images to be identical, you have to move the slider towards the left, not the right.