The 'other two options'? Was Context specific actions - the 3rd option, the large CONTEXT button, not available?
attack, special, context, defend, all had X's over them, pacify and escape were grayed out, all i could do was inspect and surrender
There is no circumstance under which 'Context' would have an X over it, because that graphic does not exist.
I've just tested again, and the fight is working as intended.
maybe i activated a 1/1000 bug?, whatever happened i have no idea but regardless of that issue i ran into, the game is fun