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Do the 1 and 2 keys work, when dialing a number for instance?
What sort of options are those that the 1 and 2 key do not respond to ?
Try re-seating the phone line in the jack on the VTech phone, please... this is done by unplugging the phone line from the phone, briefly, then plugging it in again to the same jack it was unplugged from. See if that helps (though I admit, I do not think the solution will be that simple and easy. It is something to try, once, for this sort of problem.)
Do other phones of the same model work on the same line when asked 1 for yes 2 for no or similarly?
At this point I am still uncertain as to whether the phone is at fault, or the line/port on the phone system, or the like.