Esc -> switch both the second and third lines from the bottom to the 2nd option (the one with three runes).
From above:
Go back to game
Go to character select screen
Go to title(main menu)
Reset the position(Shortcut:F1)
Set health
Set spirit
Spirit immediately recovers (Yes/No)
Set Player 1 popularity (50% yes and no/75% yes and 25% no/100% yes/100% no)
Set Player 2 popularity (same as above)
Dummy's behavior (Stay in the middle/Go up/Go down/Com/2P control)
AI's difficulty (Easy/Normal/Hard/Lunatic)
Set Player 1 position (This will change your starting position and when you press reset(F1))
Set Player 2 position (Same as above, also the dummy will position themselves there during the practice)
Set whether hits will be confirmed as counter or not (Yes/No/Random)
Auto-guard (Yes/No/Random/First hit only)
Chicken-guard, the one that pushes back (Yes/No/Random)
Roll after down (Forward/Backward/Random)
This should be all you can do in practice mode.