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I have a data validation dropdown with a list of possible values, and if the cell is empty or has a value, the dropdown list will show correctly.

But if the cell contains a formula, the dropdown list will not show and clicking on the dropdown arrow will enter cell editing.

Is this by design?

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pretty much yes, to return on selectable items on dropdown menu you need to select a cell and delete it with Delete

to avoid it use green aproach:

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