Set Featured Image missing option to Use as Featured Image

Hello,

I am using version 3.1 (the latest version of WordPress). As you can see from the screenshot, I do have a box that says Featured Image at the bottom right on the edit projects page. I click on the link that says Set Featured Image and locate the image I want. However there is no option to Use as Featured Image. The only option available to me is Insert into Post.

What steps do I need to take to make the “Use as Featured Image” link appear?
Screenshot:
https://i.imgur.com/GDOkC.png

*Edit*
I have deactivated ALL plugins as some users suggested in other posts, logged out and back in with no avail.

I am having the same issue with ALL themes.