Is this by design? Even when I right click a word or phrase the information box does not give the option to highlight.
Also, not able to highlight when the Highlighting tool is open.
mm.
Yes, this is by design. The text shown is just a text excerpt. It's not a resource display, so it doesn't have access to all the features that being a resource display would enable.
That said, you can right click on hyperlinks in the text to get a fairly full featured version of the standard context menu.
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