I don’t think anything should have changed between 1.3.6 and 1.3.7 in regards to the menus. I’ll take a look and see what I can reproduce. If this is an issue we’ll get to the bottom of it and push out an update.
We have deployed Go 1.3.8 to WordPress.org. It should be live shortly. Please update Go to version 1.3.8. If you are still experiencing any issues after updating, please post back here and let us know.