Highlight with apple pencil disappeared?

Hi.
I loved the feature highlighting document with apple pencil feature and used it to read mainly.
But after I updated to MN4, I cannot find any configuration for such feature.
Is the feature deprecated?

Are you referring to this?

MN3:

MN4:
IMG_0294

If so, indeed. Also missing from the iPad are the brilliant custom excerpt tools one can make with the desktop version.

Though you can choose this option to sort of get it closer to what you expect:

It is still not highlighting like MN3 however.