It seems that you have found an issue with our documentation on the update from database dialog.
Indeed the documentation on that topic is incomplete and we will be working on improving it.
Now, regarding the drop down column in the same dialog, it is actually intended to allow you to change the change action of a change set item. This functionality is intended for cases when we cannot correctly guess what is the change that happened, for example:
renaming a column will be show as an (add, remove) pair of changes
in such a case you can use the drop down to specify that this is actually a "modify" change and after you select which table has been renamed the changes for this table will be reevaluated and displayed correctly
If you want to apply a single change, for example an added table, you just use the "apply selected" command from either the tool box or from the context menu.
I hope this helps. Do not hesitate to write again if you have more questions.
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