The menu is collapsed.

Pressing and holding A over item in hand or equipped inventory,

press LB or RB into vicinity,

Press down on D-Pad..... at this point the white selection box disappears.

Releasing A drops the item into an invisible inventory space.

The white selection box should not move from the top of vicinity if there is no open drop menu.

I have tested this with multiple items on the ground in vicinity with drop menus.

There are an equal amount of invisible drop menus.

So for example: 1 police jacket and 1 police pants on the floor.

Both drop menus are closed.

Holding A over an item

LB or RB into vicinity

Pressing down on the D-Pad once makes the white selection box disappear

You must press it down 2 more times to get back up to vicinity.

This is a problem when you've got multiple crates and barrels at a close proximity in your base because you have to sift through as many hidden inventories as there are objects in vicinity with drop menus.

I have noticed in the 1.18.0.2 DayZ actual you have to press down for as many rows of items in each hidden menu to get through them.

This causes things to get lost in containers you don't want items in. Very frustrating stuff.