Kindlegen and mobi compiles both say no cover selected

I can see where the cover should be added in the compile options, but it’s greyed out. How do I get my cover image into that area (it’s already a separate file called Cover in the Manuscript).

The cover image you want to use needs to be imported directly into the binder (retaining its original image format), not inserted into a text document. If needed, you can right-click the inserted image and choose “Save As Picture…”, then drag the saved copy back into the binder, outside the Manuscript folder, to import it for use as a cover.

Thanks, Jennifer. Once again you have come to my rescue.