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The Selected Annotation toolgroup contains icons for merging two or more annotations, and editing and deleting your currently selected annotation(s)
The cursor key will cancel any annotation function you currently have active and bring back the normal cursor so that you can navigate the image or select annotations by clicking on them
With an annotation selected - see the blue highlight below - clicking this button will delete the annotation
You will be prompted to confirm that you want to perform this operation
With an annotation selected, clicking this button will open the text editing menu for the annotation
In the menu, you can change the label / classification of the annotation