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On Plesk for Linux mod_status is disabled on upgrades to improve Apache security. This is a one-time operation that occurs during an upgrade. You can manually enable mod_status later if needed.
I would suggest enabling the Debug mode and checking the /var/log/plesk/panel.log for any records when you tick the checkbox of the option. That should shed more light on the issue.
@Daveo, do you have the 'Proxy mode' disabled for the domain name in question? Smart static files processing is applicable if you run Apache + Nginx with proxy mode on.
If you are still unable to set "Smart Static Files Processing" to on after enabling "Proxy mode"(you can disable it afterward), please follow the instructions provided by @Mikhail_S and let us know if you see any errors.