Convert to Freeform Pick One On RIGHT-CLICK ==> BUG?

I couldn't replicate your problem. I was able to create a slide with a screenshot of a piece of software, and right click on a hotspot I inserted and show a layer (I used a fake dropdown that made it look like you opened a new piece of the software). If you can't share your file, you may want to create a support case with Articulate at support@articulate.com so they can look at your proprietary simulation.