Layouts plugin allows you to design and customize the front-end display of your website. You can design entire pages, including header, footer, menus, content and all other elements.
When you ask for help or report issues, make sure to tell us the design that you want to achieve and the layouts that you have created so far.
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The issue here is that the user is using the Toolset starter theme along with Layouts but notices that there Layouts menu doesn't have the dropdown added.
Solution:
When you are adding the menu to your layout using the menu cell, you need to select All Levels in order for the dropdown to appear.