I cant select mercurial version from 3 provided ways.
And i want to use mercurial!
I just came across this issue as well, although the first time I could point it to Mercurial but it just popped up again, then further attempts it does not allow me to browse, it would start an embedded download though but I'd rather use the system one.
That's when I realised apparently it doesn't accept the latest mercurial version (3.7.1 at time of this post), you need to install 3.2.3 and then it's happy (3.2.3 is the version it also downloads and runs embedded).
On the Mercurial page, just copy the download link and change the version from 3.7.1 to 3.2.3 to download the version you need to use with SourceTree.
Hmm.. well I did give up on doing it at the time of the installer, I selected not to use Mercurial, then in the SourceTree GUI, under Options I tried enabling Mercurial support several times and it only stopped with that 4 option popup after installing Mercurial 3.2.3 specifically, it wouldn't accept 3.7.1.
I also used the x86 (32bit) MSI installer for both (extract it from the SourceTree.exe providing you have .NET 4 already installed), and I used this link (I changed the version from the current to the one the embedded Mercurial downloads 3.2.3) if you use the link and just remove the file on the end, you can see a directory listing of all versions, both MSI and EXE, http://mercurial.selenic.com/release/windows/
I also installed GIT using it's EXE installer with silent option before Mercurial and SourceTree and ST recognised that fine.
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Supported Platforms macOS Windows To make using Sourcetree as simple yet powerful as possible we embed (bundle) dependencies such as Git, Git LFS, and Mercurial. We strive to keep these...
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