The framework does not currently support chaining of popups so it's not possible to embed a link from one popup to another popup. All links with a data-rel="popup" inside a popup will not do anything at all.
Try setting the size of the popup. There isn't room for the select list in the popup.
Try using native select menu.
I don't know if the select menu widget actually uses a popup widget or not. If it does, then the chaining rule would still apply, and documentation should be clarified on this.
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