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Steps to reproduce (on Os X El Capitan)
1) Open Media Encoder CC 2018
2) Drag a video file (e.g. .mp4)
3) click on the codec or preset link of the file
4) after window opens, click on the "format" or "preset" drop-downs, under export settings.
The window would lose focus, no drop-down menu appears.
EDIT: I upgrade to OS X High Sierra and the feature works as expected.
So it's a bug on El Capitan and possibly Sierra
Glad the issue is resolved with OS update. Thanks for letting us know the status.