It’s not possible to navigate drop down menus of any kind (below title bar menu and the instrument selection drop downs) with the arrow keys on a computer keyboard.
If you decide to fix this, please also consider to implement basic computer keyboard navigation through all ‘views’ (mixer, tracks, plug-ins, layers, etc.) by e.g. pressing ctrl+tab and ctrl+shift+tab.
Then within the views tab / shift+tab for quickly cycling through all controls.
This should have been a consideration at the very beginning, and in my opinion isn’t excusable for a company as big as Steinberg.
Ctrl+Z / Y also doesn’t seem to be supported anywhere.
Bonus points if you can map all of these shortcuts to midi controller functions too (in part I believe this is already possible, e.g. you can apparently switch views on a midi controller, but I didn’t test this)