I need to turn the difficulty down but there is no options menu to be found.

Press F2 on keyboard.

Okay got that, how do I enter the cheat menu now? I am doing block and low kick on my controller and no laughing sound is to be heard.

You have to hold Block+Low Kick in Practice - Difficulty settings. Once the Cheat Menu is activated, you can play as Goro and Noob Saibot without beating the game with Shinnok and Reiko. Meat still requires Group mode to be completed tho:

Does not work for me. I have a laptop and it just increases the volume. Even when holding down SHIFT or CTRL it will not work. I'm trying to fix the controls on my keyboard.

You should have a Fn key (or similar) on your keyboard - use the combination of Fn + F2.

Yup. I figured it out. Thank you