Hi,
I think you can put both components on the same panel, but it's not necessary. Here's an example so we have a common point of reference:
DS_CorgiScreenSpaceFollowExample_2019-08-15.unitypackage
I added screen space canvases to the NPC and the player prefab. (And set their order to 1 so Corgi's canvases don't block mouse input to them.)
On the subtitle panels, I set:
- First Selected: continue button
- Focus Check Frequency: 0.2
- Refresh Selectables Frequency: 0.5
- Select Previous On Disable: unticked
On the response menu panel, I did the same except for assigning First Selected.
If your scene works differently, you might check for differences on the Dialogue Manager (both the Display Settings section and the Input Device Manager), the characters' Dialogue Actor components, and the panels.