I have noticed that the text selection tool doesn't work on highlighted text. I believe in an earlier version this did work, however I may be making a mistake. Instead of allowing you to select text, the tool simply selects the highlighted block. The text selection tool on highlighted text was very helpful for when I wold review a document and highlight sections I might want to include in a paper, then later I could go back and select part of this highlight and copy and paste it. This was posted to bugs as I'm pretty sure this used to work, but if I'm wrong, feel free to move it to feature requests.
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This is not a bug, it's a fact of life. It has never worked.