Ok understood, I confused PIP and PAP. According yo the manual of your TV there is no problem with the two signal you are trying to watch http://pdf.crse.com/manuals/14HA230111/EN/c_pippap_europe_ga_co_pip_4k.html but in some other model it is not possible to have as primary source an HDMI source... a mistake in the manual or something not working as expected.. only someone with your identical setup can help you

For the option button, have you tried pushing the sync-menu button and revert control to TV?