I am trying to find out how to use textDrop but can't find reference in the manual, just one general comment about it on the forum. I have managed to create some text and categories but can't see how to drop it into a cell as an annotation. Can you point me in the right direction please?

You will find on the textDrop tool, three dots on the right corner. This will let you add text as annotations instead of text in the cell.
Here is an image that should help



Keep in mind that you won't be able to drag and drop those texts into your gradebook if you are editing texts. I'm guessing that is the problem. Below a couple of images.

This is editing mode, you will see the delete and sort buttons next to your texts






This is the normal mode where you will be able to drag and drop your texts



Additionally, you may change the position and size of the textDrop tool by dragging the bottom gray tool bar and with the pinch gesture

Thanks Bert. I stupidly hadn't realised that you just drag the text. Great function when you know how it works!

Sorry, another question. I have dropped a line of text successfully as an annotation. However, when I drop another line of text into the same cell it replaces the original rather than adding to it. Is this how it works? I would like to add a number of different statements to create a paragraph of assessment.

It is not possible to append texts yet but we have it in our to-dos