Creating Phrases Edit Section

It says I can do it when I right click but I get a message that says.
“Sorry, can currently not create phrases from instruments which already use phrases.”
I made sure that the Phrases were off but still the same message appears, I can copy and paste them and it works that way but I just don’t understand why it is the way it is?

It also creates a new Instrument when that button is pressed and not just a new Phrase within the Instrument being used.