Pattern recognition is disabled.
Solution Solid Edge does not recognize holes or patterns of holes for a surface model. It will need to be a design body. If the geometry is a design body, you need to run the 'Inspect -> Recognize Holes' first, before running the 'Recognize Hole Patterns' command. When the 'Recognize Holes' is grayed out, there are no candidate faces that can be turned into a hole.
Notes and References
Hardware/Software Configuration Platform: INTL64
OS Version: 764