If you remove the local extract in Desktop, (Select Extract>Remove ) and then recreate the Extract with the Incremental option enabled, the option to utilize a Incremental refresh for the published data source will appear when next published.
The issue encountered is due to the lack of a defined data field to determine new records since the last update. This field needs to be defined at the time that the initial Extract is created.
Lénaïc RIÉDINGER, Global Community Engineer Tableau
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Thanks for the reply! Unfortunately this suggestion did not solve the problem. We are working with technical support as they can't replicate the issue. I will report back when I have updates as it has been escalated to another team