Thanks for refreshing this post Anon. Nice to see this post is relevant and can be improved.

User adaption is the priority with this solution. To be able to quickly add a new term by just adding it from the managed meta data text box would make the flow of adding new clients easier and smooth. As for your question I am unsure the correct way to go about this.

I just looked and I can confirm that it is disabled. I don't believe it has ever been turned on. Thanks for posting.

Bumping for visibility.

@Waldek Yes the term in question has been marked as Available for tagging. Should it be unchecked?

Sorry for the confusion. Any workaround if it works will be a good answer for me or someone with the same problem. Just making it easier for other people in the future looking for this problem