In playing around to try to create this mosaic dataset it seems that the problem is related to the "Advanced Options" > 'File Filter' option. I trried to filter the grids to be added from workspace by using a wild card. When i attempted again after removing unwanted grids from the workspace and then using the Add raster to Mosaic' without using a filter, the tool successfully added the thematic, single-band ESRI grids to the Mosaic