I noticed the same thing.  I had a titanium backup of my 2.5 settings that already had the flashlight enabled.  Since it was enabled before the latest ud allows me to continue to use it.  It's functional I have no idea why it's grayed out though.
				
			Is it me or the LED flashlight cant be selected under notification power widget in UD settings... TIA
I have the same problem. The torch app works fine though.
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