So that customers are never charged without agreeing, Add automatically is only available when the gift product is priced at zero.
Do one of the following.
- Set the gift product's price to zero.
- Change how the gift is added to Let the customer tick a checkbox or Ask in a dialog.
If How the gift appears is set to Discounted to free, the gift product has a price, so Add automatically isn't available either.

Related
Choose how customers receive the gift, Choose how the gift price appears in the cart