“Use Field Editing Attributes” option is not applied to Text Editor Objects in formula mode (particularly Input Range).
This option is only applied to Text Editor Objects in variable mode.
If the data mode for a TESO is switched to Field/Variable then switched back to Formula, “Use Field Editing Attributes” option works temporarily until the form is closed.
Panorama Help shows:
Use Field Editing Attributes – This option only applies if the Text Editor Object is associated with a variable or formula.
Auto Capitalization – This option only applies if the Text Editor Object is associated with a variable or formula.