A family of Microsoft spreadsheet software with tools for analyzing, charting, and communicating data.
Hmm, I see no difference in behaviour between the two sheets. In both sheets I can select a time from the dropdown, for example 12:00:00 and manually edit the cell to show 12:03:00.
That works in Excel Online and in Excel for Windows (2016). I don't have 2007, so maybe it's version specific.