Apple Configurator 2 supervison

Just setting up Apple Configurator to use with 3rd party MDM. Identity and MDM server have been setup and certificates install. In the manual prepare options, the "Supervise devices" checkbox is greyed out. I am just testing this out with a simple profile for Wifi connection only. After sucessfully prepared the iPads on iOS 11.1.2, they are all showing up as unsupervised. What am I doing wrong?

Apple Configurator 2 supervison
 
 
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