This is normal. Disc menus added to previous Studio version projects will not import into Studio 16 and Avid Studio. Studio 16 and Avid Studio uses a different menu system than previousStudio versions. The disc menu is no longer added to the Timeline. After importing a previous Pinnacle Studio versions project with a menu, you will see a clip that looks like this on the Timeline:
This clip indicates that a disc menu was present in this project. When this clip is previewed, it will look like this:
To resolve the issue, you must delete this clip from the Timeline. Once it is removed, convert the project to a Disc project and add a menu to the project. You will need to reset all previously created menu links.