I know I'm raising an old topic, but I have a problem that I also can't create a new wallet in the latest version of Electrum on Android, which is an upgrade from an older version. I have about a dozen wallets that I can open properly and they all have the same password, but when I try to create a new wallet the "next" button remains gray.
I just tried to create a new wallet on the latest android version of electrum and I could do that successfully. The "next" button worked.
Change the wallet name and see if it works. Maybe, you are creating the new wallet with the same name as one of your existing wallets.