Can I create a 24 words seed phrase instead of the NGRAVE "Perfect Key"?

Yes, you can also create a wallet with a 24 words seed on the ZERO. However, we recommend to create a NGRAVE Perfect Key, because that can be stored and securely split on a GRAPHENE.

Since firmware v 1.5 you can only create a wallet with the Perfect Key format.
If you want to make a backup of 24 words instead, you can do so after setting up your wallet. Both the Perfect Key and 24 word seed phrase versions of your backup can be found via Settings → Display secret key.