I don't believe there is anything to fix here. From the timeline you can select the Text tool with a T, you are not adding text yet. You can select the program monitor and play, set in/out, etc with the (V) Selection tool, Pen tool or even the Text tool, the interface is consistent, but with the Text tool selected, once you click the monitor and have the thin red bounding box, then you are entering text and you are not setting in/out, play etc by the various keys you type.
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