I can help!
As far as getting your menu to preview in the workspace –

In the preview window, press this button and it will render your menu so that you can see a preview in the menu workspace. As far as getting it to play or preview in that menu I don’t think its possible, only in preview.
For your buttons –
Encore is meant to work off ‘still’ buttons, but your situation sounds a lot like mine and I have a workaround for you. I pre-made took a button from the library tab –

If you have nothing in your library tab like I did, Adobe has it available for download.
Place that button onto your menu, then look into the layers panel and delete everything excluding these –

In the menu workspace that you should be able to see a preview of your menu, stretch these boxes over the video where you want the user to select.
to re-cap that last part, you are taking a pre-made button, turn off the graphics in the button, then place the “selection box” over wherever you have a menu item. If you have multiple menu items, after you do this once duplicate that layer and do it again!
I know that this is a few months late, but this information took me awhile to find myself and I hope this can help anyone that stumbles upon this post.