Thank you for maintaining your focus on my little problem. 
I DO always have that checked and I had never tried hitting Tab! Now, once I move the focus to the dropdown and close the prompt it works the next time the Prompt is triggered!!
Thank you!
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I know you have the solution from @Zabobon, so I’ll keep this short.
In the usual Mac terminology, the “default” button is one that’s fully blue. Pressing the Return Key simulates a click on that button. The “selected” button (or text field or menu) is different. It’s the one surround by a blue halo. If your settings allow it, you can cycle the selection through the various items by tabbing and then simulate a click on the selected item by pressing the spacebar.
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Agreed. "Default" and "Selected" are different. I think updating OS and/or KM caused the Prompt "selection" to change. @Zabobon's response brought that to light.