With Retell, the problem is your prompt is telling the LLM to describe pressing a key rather than actually invoking the DTMF tool. The model takes your wording too literally and narrates the action instead of executing it.
The fix is to make sure the DTMF tool is enabled in your Retell agent settings first, then reword your prompt to instruct the agent to use the tool rather than describe what it's doing something like "when you hear the menu, use the keypad tool to send the appropriate digit" rather than referencing "pressing" anything.
What does your current prompt say for that part? That'll help me give you the exact wording to change.