Yes, it does indeed turn on in text edit, but not off. Worse, once it's on, even quitting text edit does not close the character pallet. And, as you say, command-option-T won't turn it off again. I've inadvertently turned it on when trying to switch a text edit document to text only which is the command-shift-T keystroke (if I remember correctly)
Thanks for pointing out where that slip of the fingers derived from.

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