The new highlight text method on Android is good (as it doesn't have the above indicated problem), but I think it would be better to have multiple highlight buttons (one per color) on the bottom, as we could only tap once on the specific color. Now, we need to press the default color, and next tap the colored text, an finally tap the wanted color. (3 taps, on place of just one)

I had the same issue. Really annoying. The pop up shows below the context menu in android 10, but is hidden like the picture in android 11. (Both the latest version of raindrop, 4.5.1)