I came up with a workaround:

Copy your ISO image to /tmp or somewhere else not automatically
destected by usb-creator.

Choose 'Other' and select that ISO

Select that image from the listing

Now it's not greyed out anymore and you can also go back to select your
original image and it will be good.

Voilá!

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Persistent Storage option always greyed out
https://bugs.launchpad.net/bugs/557775
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