Left click on the potion in your inventory; it sounds like you are right clicking and getting the item menu.
The first bedroll was in the room across the hall after you jumped down the pit in the arena. There are 2 more bedrolls near the beginning of act 2.
The level 3 BF key for act 1 is found close to the end of the act.
The first level 1 key was in a chest in the starting cell block, on the southern path, partially obscured by chains and steam vents. The key is in the left spider cell in the arena.
