Hiya, cheers for the feedback!
I'm currently sat on a V1.3 which fixes both of those issues (enemy kills rarely don't count properly, input time for dipswitch menu), which I cannot upload because the game jam rules specify that I am not allowed to upload it until after the results are announced, which is frustrating as I want the players to have the best version in their hands regardless of the game jam and such.
To address your question (and I apologise for the wall of text incoming, but I want to give a full answer from a design perspective), I didn't use a menu point because the vast majority of arcade games didn't have standard menus, and I wanted Blue And Red - Fight The Robots! Arcade Edition to be as close to arcade authenticity as possible (within certain constraints). This is hence why the dipswitch menu was also included, because most arcade games had them (or some kind of service menu), and that gave me an avenue to still have options in the game. I also wanted the dipswitch menu to be accessible by players who don't have a keyboard (such as those playing on MiSTer or the A500 Mini). However, the trade-off for this was that I didn't want it to be too easily accessible (i.e. not accessible from the standard title screen), and in many titles the service mode was only available on an initial boot or reboot. This left me with few options, and in the end I set it so it was accessible from the Kaiju Wasp logo splash screen upon initial boot. It was only when I got feedback from folks using certain emulators that I found out that some emulators don't show that splash screen for the full two seconds it is meant to be on screen, so in V1.3 the amount of time it is displayed for is four seconds instead of two. In addition as a heads-up, when inputting the directions the joystick needs to return to neutral after each direction, you cannot just rotate the joystick around all directions before pressing the fire button.