Looking at the second image (Drop-down menu), this application shows the PO Actions in an expand-contract fashion, not as a drop-down. Automation Anywhere can work with a drop-down menu that is actually of type HTML Dropdown. So, the Select Item By Text activity won't work with your target application.
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One way to approach can be by going for Object cloning over Windows control simply because Object cloning lets you have increased control over the objects and their properties and I would suggest you use Object cloning and choose the right option from within the Object Properties rather than using Web recorder after that.