Able to reproduce the issue on Mac 10.11.5 using chrome version 52.0.2743.0.
Marking it as Untriaged to get more inputs from dev team.

Thanks,

What do you mean by "Focus is seen on Alternate Options"?

In the video, the context menu shows 5 options, and seems that
keyboard navigation skips items with icon on the right
(indicated "[>]" below):

- Delete options
- Settings [>]
- Download searches
- Help [>]
- Send Feedback

Do you refer to these menu items with the icon an "Alternate Option"?

It seems to me that it is working as intended, though not sure why.
I guess this is not a Chromium/Blink bug.

Unless there is a theory to believe that this is a bug in Chromium/Blink,
I'll close this as WontFix.

@Kochi :In the Context Menu Focus is not seen on Single Option On mouse Hovering  i.e. it is seen on two options. Once Pls refer Attached Video

Deleted: Actual_FocusOnTwoOptions.ogv 1.2 MB

Actual_FocusOnTwoOptions.ogv 1.2 MB Download

Hover and focus are different concepts, and the page in the video
uses the confusingly similar visual style for them intentionally.
I'm not sure why, but the context menu maybe had some reason for
keyboard users to skip "Settings" and "Help" menu items, although
for mouse users all menu items are allowed.

So once you hover on "Delete options" with mouse, focus automatically
moves to "Delete options", and they you move the mouse over "Settings",
*Hovered* item is now "Settings", but the focus is still on "Delete options".
That's all.  In this state, if you hit "Enter" key, you'll navigate to
the "Delete options" dialog, while if you click on mouse, you navigate to
the settings page.

I don't think this is an issue of Chromium or Blink, but the page author
did so.  The page is working as intended.