Hi Jessie Hadaller,
Thank you for querying in this forum.
I go through the post carefully. Since you post the question in Word category, may I confirm if the issue appears when you try to edit in Word application?
And to better understand the situation and help you troubleshoot the issue, could you please confirm information below? I will try my best to help you.
1.Does the issue only happen in Word? Can you edit or draw in other Office applications? Excel and PowerPoint?
2.Could you share a screenshot about "Text and drawing options are greyed out"?
3.What is your iPad screen size? And what Microsoft 365 plan do you have?
4.What is your iPad OS version and Word application version?
Many thanks for your patience and effort. Hope you have a nice day and stay safe!
Best regards,
Tina