Ok, so I already had the game mode stuff set, but it was still not working in my project. It was working in the TOP DOWN example template, but not in my custom project level. Then, I made sure all my settings were correct again and something weird started happening. Now, in my custom project level, the menu shows up only when I quickly double right click on my character and disappears only when I quickly double right/left click away lol. Its not perfect, but I am really happy that something is finally working 
Ok, so now, a few things:
*FIXED(1)
(1) Why does it work with single click on the top down template example setup, but needs double click to work on my custom project setup?
FIXED(1) I had to change the mouse capture setting in project settings to: permanently including initial mouse down*************
FIXED(2)
(2) Once the menu opens, I cannot right click on the character again to open it up anew. I have to click away to make it disappear, and click back to make it appear: (like first i opened by right clicking the character leg, but when I right click the head after menu is already open, it doesn’t disappear and open again on the head click location). {{for example, in windows, you can right click on an icon again and again, without having to click away}}.
********FIXED(2)*******made adjustments to the right click menu logic in player controller
CONTINUED BELOW