Answer is that the single dropdown (single attribute) code incorporates disabling of out-of-stock items (this was code implemented to the SBA dropdown attribute type. If not mistaken if the attribute type for products such as this is instead chosen as a standard dropdown, then the greying will not occur.
For multiple attributes, (two or more dropdowns), something like this is in the works for incorporation, but is expected to involve admin controllable options because of the potential complexity of ways to be presented.



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