Media sharing greyed out in Catalina

I am trying to activate Media Sharing and Home Sharing after updated to Catalina, but without success. I re-authorized the Mac several (as suggested by others) multiple times. Still unsuccessfull.

When selecting Home Sharing directly and entering the AplleID/password, the Media Sharing toggles on. However, it doesn't allow me to select folders for displaying pictures on AppleTV which is my ultimate goal. This is very anoying!

(I have also started in Safe Mode and created a dummy user to check if there could be issues with my own user. No difference...)

Note: I am running macOS10.15.2.