A dropdown is a menu item with other items nested under it. In the menu editor, drag an item under another one.
Go to NAVIGATION and press EDIT on the menu, for example Header Menu.
Refresh your site and hover over the parent item (tap it on a phone) to see the dropdown. The arrow beside a parent only folds its items inside the editor.
On phones the menu icon usually opens the Drawer Menu, which has its own items. Add them there too.

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