No, the WinHttpAutoProxySvc should not be disabled. When a service controls are dimmed like that, it is an indication it should not be modified. It would be preferable to pursue the root cause of the issue.
As a last resort, it may be disabled by changing the following registry value:
Key: HKLM\SYSTEM\CurrentControlSet\Services\WinHttpAutoProxySvc
Value: Start
Value Data: 4
With regards to safety, that would need to be determined by testing in your environment.
Can I safely disable WinHttpAutoProxySvc if I don't have a proxy?
https://serverfault.com/a/762987/20701
Many organizations have disabled this functionality due to critical security vulnerabilities, and no-one needs it anyway. Typically this involves using the Microsoft recommended method by adding 255.255.255.255 WPAD
to the hosts file.
https://learn.microsoft.com/en-us/security-updates/securitybulletins/2016/ms16-077#workarounds