Hi...the first option is when AVR and ESP are connect over serial 1. In this mode you can't use USB (upload and monitor are unavailable). You must accept this fact and monitor using serial 2, telnet, LCD, TV out .. . To change the sketch you must select other mode with dip switches. Or use ESP firmware with AVR sketch OTA upload over WiFi.
B
BrockDorf
@BrockDorf