Windows 10 for phone keyboard a blue dot is added what that use?

Allows you to position the text select cursor freely (the blinking line when writing text), and removes the need to reach up and grab it to position it where you want. In theory, you would no longer have to cover parts of the screen with a finger when you reselect text or move the cursor. With W10's ability to shrink the keyboard to one side. Even the cursor movement can be done with only one hand and your thumb.
 

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