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When attempting to register an SDE feature class or feature dataset as versioned in ArcCatalog, the Register As Versioned option disabled.
The Register As Versioned option is only available for ArcGIS for Desktop Standard and ArcGIS for Desktop Advanced licenses. This article is not applicable for the Basic license
This issue occurs if the connected user is not the data owner. Only data owners can register or unregister data as versioned.
For more information on user privileges, refer to the following documentation, ArcGIS Help: User privileges for geodatabases in SQL Server.
Connect to the database as the data owner and register the data as versioned.
ArcGIS Help: Granting and revoking privileges on datasets.