That's not something I can personally reproduce and not something anyone else has brought up at this stage (and there have been no changes there in the last week or two).
Are you still able to reliably reproduce this? If so, is that with a specific browser/OS? Does using a different browser make any difference?
Yes I can reproduce this with both FF and ME OS/windows 10 . Works fine here but not on my test site. No errors were reported when updating from xf2.0 to xf2.1 beta
@Chris D I found the issue. I had an add on called 'Editor Manager' installed. When I disabled it the smilie menu worked as expected. Thanks for your time