Please don't ask different questions in the same thread. 1 issue per thread for easier discovery and more accurate forums.
Again, hard to understand what you are doing and then what you are seeing when you provide so little information on the steps you are following. Please post a video if you aren't going to type out more detail.
So, we have to make assumptions on what you might be doing, and expecting.
The Lyric editor (https://stagetraxx.com/docs/v4/song-details/lyrics/#lyrics-editor) is not Microsoft Word. it is not a What you see is what you get editor.
You edit the lyrics and see the raw formatting code when you use it.
If you want to see what it will look like when 'rendered', you can press the Preview button (https://stagetraxx.com/docs/v4/song-details/lyrics/#preview)
If you are asking for a menu containing formatting options like in a word processor, no, that does not exist.
Some basic options (Bold, Italic, Underline) will appear just above the on-screen keyboard when you select text.
The simplest way to apply formatting is to use a physical Keyboard and use the keyboard shortcuts (https://stagetraxx.com/docs/v4/song-details/lyrics/?h=keyboard#keyboard-shortcuts)