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Dear fellow Illustrators,
Please help me find this swatch filling option above the cursor. Thanks!!
Press K for the Live Paint bucket.
Your screenshot shows that you are (were) using the Shape Builder tool.
Are you saying that you don't see the swatches anymore when you are selecting something and then switching to the Shape Builder tool?
If so, you may double click the Shape Builder in the Tools palette to open its options dialog. Check if the Cursor Swatch preview option is turned on or off.
I learned something, never knew that the Shape Builder tool had cursor swatches 🙂