This was the previous behavior, before this RC
I think that https://orionfeedback.org/d/6917-new-tab-page-missing-favourites caused a regression.
Previously, if favorites were not selected in start page, ie as shown below, favorites would not appear in the address bar dropdown.
Now, the address bar dropdown always shows favorites, whether or not favorites are shown in start page.
The address bar dropdown should respect the option selected in the start page customization
0.99.129.1-rc
Sequoia (15)