Welcome 
…
( at least for me… and until 3.6.12 )
…the sub menus of the T-panel never opened automatically… this was only (enable-able AFAIK ) for the “standard” text menus…
I did not get your point.
You showed your second image to emphasize that the menu should open while you are hovering of it because you enabled Open on Mouse Over ?? But at the T-panel they have to be clicked… (except if this actually changed in 4… ).
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Even on Click they do not open → https://screenrec.com/share/aeXHZmFL0Q
That is strange i am using 4.1 and have no problem opening the drop menus?
Try closing some of the latest addons.
Dose shift + spacebar +E works?
How should I do this I have a fresh install today.
I tried but drop downs are not available.
Have you tried reinstalling?
New discovery —
If you hold on the manin menu by left click of mouse for sometimes, the drop down appears, but as soon as you release the left click it disappears in the fraction of second, and submenus can’t be clicked.→ https://screenrec.com/share/BFOxYwcNsR
Well 
in fact i never thought of this before… but the behaviour for the submenus in the T-panels is to click-drag tto open and select the wanted “item”…
( Since there was this case when someone got really angry when asked… )
Just to make sure: your mouse is working properly ?
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3 Months old Dell G15 Gaming Laptop with Pentium 17 and 16GB RAM, and brand new wirless mouse is just 17 days old and works 100% accurately fine everywhere.
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Actually… this doesn’t answer the question…
Some of my older equipment works better than some new ones.
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This problem wont be solved?
As @digitvisions wrotes: he doesn’t have a problem… so… IDK
As i mentioned before: this settings are for the standard text menues and does not change the behaviour of the T-Panel as far as i can see.
This works i am using laptop and by holding left button the list appear i then have to continue holding while selecting the one i want.
And yes soon as you let go it will disappear but the tool you selected should be applied on the object.
Have you actually selected the object in edit:
Yes, It works like that, but not as you left click and thn you release leftb click and then submenus appear. It works exactly it works for you. so 4.X have this behaviour?