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I'm having a problem, when I go to my Kanban (company managed) Project Backlog to try and create an EPIC, I select the '+ Create Issue' button at the end of the backlog, but 'EPIC' is not an option in the selection list. So essentially I cannot create an EPIC in this backlog.
I've looked at Issue Types, Schemes, Screens but I can't seem to figure this out.
The "trick" to make what you describe work is the feature to enable the epic panel also controls that slider at the bottom of the epic drop-down from the backlog.
The feature to enable the epic panel is now located at:
... menu > Board settings > Columns and Status > Epics on your board > Enable Epic Panel