Editing works just fine in the balloons, which is one of the reasons that I prefer them. Not in the Reviewing Pane, unfortunately, where new text is inserted beside the selected text. Usually when you select text and start typing, the selected text is replaced with the new text. I have trouble editing my comments in the Reviewing Pane. In the Word document, the DD1 comment is highlighted, and the text for that comment is in the Reviewing Pane.
Here’s what I was seeing in Word - comments were listed in the Reviewing Pane. I’d like to see show Word comments in balloons along the sidebar, but Word won’t cooperate, and shows them in a Reviewing Pane, at the bottom of the window. I’m reviewing Word files and inserting comments for the author.