1 – No display issues in theme options: see attached
2 – Initial dropdown wasnt being displayed because you didnt have a default payment method set. Not a kleo issue.
3 – I can’t figure out what’s up with the dropdowns. Your site isnt throwing any errors. It works with the 2015 theme enabled. I also tested on my dev site that has kleo 2.4.1 and Woo 2.3.7 (same as your site) and it works just fine. I tried disabling all the plugins and that didnt help either. Its loading the required checkout.min.js file and the proper css trigger classes are accounted for. :/
I need to think about this one for awhile.
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