This means that there are no financial institution accounts set up under the Cash Accounts tab. If you have set up accounts there, Edit them and check the box to show the account is maintained by a financial institution. If you don’t check that box, Manager assumes the cash account is a petty cash fund, for which no statement can exist. Therefore, no choices are available in the reconciliation report.
The Cash Summary is a report under the Reports tab of movements of money into and out of the business, by account. It is not a summary of bank account status or balance. The cash accounts you have will never show there. That isn’t the purpose of the report. While not exactly the same, this is more akin to a Summary of Cash Flows.
Yes, exactly as designed. And here you will also see status of pending transactions, cleared balance, and actual balance.