selecting color not working

Grabbed these screen images. For some reason I cannot switch colors using eyedropper etc.

I typically just click on one of the boxes and up pops the color options. I noticed that the top of the layer states  "@50% Layer 1, Gray/8"

I must have hit something that turned off the ability to use paint bucket etc.

When I use the eye dropper to select a color, the color box stays gray?!

Any help will be greatly appreciated.

Thanks!