So as the title says, the prerequisite for creating now all available allied races is to have a level 40. I have a bunch of max characters, as well as a level 53 Alliance.
Yet the option is is till greyed out to me. Thanks in advance.
You have to pick up the emissary quests in your capital city and follow the recruitment questline.
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As Nickaeladin noted, you need to complete the intro quests that invite the Allied Race into your Faction. Only what qualifies you to receive those quests has changed, not the need to do them.
Check at the Embassy to see what quests are available to you.
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Ok than you both very much.
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You’re welcome. Enjoy your new toons! 
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n/m found the issue - was trying to do the embassy quest on a evoker that was blocked by one of the evoker story quests. After completing the intro quests in org the call for allies quest popped up.
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