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Does this death dread come with all the weapon options or are you limited to two close combat arms? This is specifically the deffdreads in the multi kits box sets

Or do I need to buy the actual deffdread kit to stick 3-4 close combat arms in it?

They're the full kit - but I'm fairly sure that only comes with 3 CC arms.

I had the option to use two smaller upper arms and two bigger lower ones in the start collecting box.

There was only one flamer though, which I was a bit annoyed at...

Deff dread has large sockets for the two dread arms (the ones used for upper arms) and two smaller sockets which can either have one of two kan melee arms (lower arms), as well as small hooks which can hold any of the ranged weapons.
It should have enough bits to have a pair of any weapon option on the lower arms, except for the skorcha - it has only one of those.

I said kan arms because those are exactly the same bits as you have on you kan sprue, as in 100% identical.
This also means that you can freely trade bits between them. If you need extra skorchas or rokkits, just use the ones you kanz kit. If you need extra rokkits for your kanz, just take those from the deff dread kit.
If you want more saws or klaws or even drills, the ones from kanz fit both sets of dread arms perfectly, too.

I have magnetized all my walker arms, and can freely trade them between all my kanz and dreads.