You may have selected a media type that doesn't have the cut option available. If you go through the settings on the printer, you should be able to update this either on the back end or through the MCT (Media Configuration Tool per Canon's site) that you can have it cut that media via the Media Type when selected.
What does the error state exactly? If it's like the media type can't cut or in that area, that media type selected doesn't allow cutting upfront and you have to either manually cut or edit the setting in the MCT or possibly settings on the printer.