@mitu - Ah ok, sorry for that false alarm and I appreciate the response guys. I'll run through it again later and post if it's a specific ROM or some pattern I see.

@jareth247 You should open a new topic and provide the latest update log, as described in this topic. And please also add more information about your system - https://retropie.org.uk/forum/topic/3/read-this-first.

I had a bit of the same issue.
If i understand correctly, then when you press the "escape" key on keyboard the menu pops up.
What i did, i assigned in the controller setup a unused key, like the right thumbs key for example. I used the LR3 button to let it assign. In my case it made the "LR3 \XAC" key.
I saved the setting to global.
edited the file " /opt/retropie/configs/psx/pcsx/pcsc.cfg"
Changed the line "bind \xAC = LR3" to "bind \xAC = Enter Menu"
Saved file restart game. Then pressing the Right thumb opened the menu.

@wizzykin How about shaders to provide a retro-crt look? Are you running any?

@buzz Cool. Thank you!!!

@erikzann Please do not post a support request without first reading and following the advice in https://retropie.org.uk/forum/topic/3/read-this-first

You are probably not connected to the internet.