The user is unable to select the type of the Teams Classification from the drop down

It could means that the Tenant(domain) does not have any classification defined. A customer could have it previously created through PowerShell or using the tool to add or remove classifications. Once classification data exist, the user can choose to assign to a new team or not. Classification is optional by default but you can make it mandatory using Settings -> Make Team Classification mandatory in Team Creation Request.

Features and functions in our product are configurable so you can choose to enable it or not. An administrator could choose not to enable upon product setup function hence it will not work. it is up to the customer.

please refer to our knowledge base on how to configure New Team request feature:

1. Classification: https://esupport.wpengine.com/knowledge-base/classification/

In case you have classifications created but still cannot see it on the dropdown list please open a case with us for further investigation.