By the look of your first image, it looks like you only have a single template for the Distress Points, but not sure what the second photo is unless is selecting the distress type in the form (but I only see 4 in there and a huge list in the legend).
If I set up a form with a single template item (I have two layers here, both with single template item, Try This now and Post):
Then select one of the feature buttons, it will take me to the form for that layer (Try This now):
And lets me populate the form values and I have a Domain (pick list) for all the acceptable values for this field (I have a huge list, so either need to scroll to find the value I'm after or start typing in the 'Filter' box. Will also show the most recently used values at the top of the list so no need to scroll/filter:
In the map, I have symbolized on the MUTCD Code field (you would use your distress type field):
Does this help resolve your issue or am I still missing something?
R_