Is there a random walk theory that can account for situations with more than two choices?
Instead of having a single integrator with two bounds for two choices (symmetric random walk model), you can have many competing integrators each with a bound (race model). For example, see Fig 2. of Gold and Shadlen 2007 and references therein.

As for the continuous choices case, it is important to understand a limit of discrete choices can be very different from a continuous choice. For such a limit to make sense, there should be a notion of similarity between the choices, and I don't think those race models would generalize easily. A high dimensional continuous attractor dynamics is more likely to support such theory.