@Cody Jones - Sorry for the inconvenience caused!
I noticed that you have mentioned that 'setting up ASR and the option for physical servers is grayed out'. Could you please check if you are using Preview Appliance or Classic Appliance, it should not be a problem with Classic but the one in preview only works with VMWare and not physical.
I have answered a similar question here - https://github.com/MicrosoftDocs/azure-docs/issues/87143
Hope this helps!
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