The list of items on the new item page don't have obvious selection states. I believe the best/easiest way to clarify this situation is to show the user that these items can change to a selected state.

To do that, if the name input starts with focus and onblur the first item in the selection list gains focus and selection state, the user sees the change in state.

If the list further maintains a radio list like behavior, such that complete deselection is impossible, the user will not be able to back out of choosing an option.