The cut option is grayed out because you can't cut files or folders on a Mac. You can only cut texts.
If you want to cut and paste files on Mac, you can drag and drop them while pressing the Command key.
This may be inconvenient if you're used to Windows's way of cutting and pasting things. If you also like right-clicking files to cut and paste them, you can get iBoysoft MagicMenu for your Mac. With it installed, you can right-click on the selected files or folders and click "Move To" to quickly cut and paste files on Mac.