IPad Pro 11” with Magic Keyboard: cannot escape edit from within the note after typing (editing) as the keyboard close button vanishes from the bottom menu ribbon.
the only ways to close edit seems to be to select a different note and then return to the working note or remove and reattach the keyboard.
I have the M1 iPad Pro 11" with Magic Keyboard, so should be fairly similar to yours. I can escape with the keyboard close button from that ribbon menu, though the standard “command + period” escape option does not exit edit mode for me (as I’d expect it to, but not sure if this is something Shiny Frog has implemented in the past)