Dialler - Different Options Being Presented

Did you do anything with your device, like root access?

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No, it's a stock standard Australian ROM. I thought it might be something to do with having Bluetooth in use but haven't tested that theory as yet..
 
Make sure you have keypad chosen at top, not log, favorites or contacts.

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So is it a given that to use the keypad during a call I can't ring them using a favourite or from the contact book ? Sheesh, that's crap if it's the only way.

I did discover if I exit out of the phone call app while the call is on and click on the phone icon it then gives me the opportunity to do use the keypad - but it seriously should have an option in the screen I took a shot of.