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Every time I select Gray Scale and then Bitmap, the image flattens (which is expected) but then I can't duplicate the layer or even export the image. I can't imagine these are designed behavoirs.
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@Buttonhead Okay, well, I'm curious why you want or need to do all this converting in the first place but you are right that once you save as a bitmap, you won't be able to add or duplicate the layer. However, I can export a grayscaled-saved-as .bmp image without any problems. For example, I tested exporting this file to a .png and was able to open that file and work normally. Is this a workflow you've used before and now it's not working or something you are trying for the first time? What are you trying to ultimately achieve?
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Flattened = no layers. So of course you can't duplicate layers on flattened images.
I suspect you're struggling with a locked Background layer.
Double click the Background layer to unlock it.
Use Ctrl/Cmd + J to duplicate it on a 2nd layer.
Hope that helps.