Hi in0,
Thank you heaps for the detailed information on what "should" happen. It would be great if it was in the documentation for the Arduino IDE.
So, I do get the first screen you show. And I dutifully clicked the start button in it.
The next screen I get is very like your second screen, but with a crucial difference - the two download buttons are not there. That's what I meant by saying its just a dumb screen which accepts no inputs.
I note that I'm running a fully updated copy of Windows 10 Home Edition, with a very recent version of google chrome (version 95.0.4638.69 which chrome says is up to date), and my user account is an Administrator account.
So, I'm really stuck! I can see that, for you, the software seems to work as advertised. But for me it doesn't.