Is there a LWC that allows me to utilize it as a text input field and also a dropdown menu?
I need to display results as a dropdown but also allows user text input to search.
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You likely need a typeahead or text lookup. There are a lot of components built by the people. It won't look exactly as drop-down. If you want to build that from scratch then you can use the lightning design system to create one.
In simplest approach, standard HTML input tag also have a list attribute that can help achieve this. https://www.w3schools.com/tags/tryit.asp?filename=tryhtml5_datalist