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I am trying to annotate pdf on Preview and when I add note a highlighted text, I cannot drag or reposition the note icon (box). I have attached a screen shot to explain my question.

Is it a bug or feature ? because I can move the Note icon if I add a note separately (not combined with the highlighted text)

enter image description here.

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Unfortunately this seems to be a (rather ill-implemented) feature. You can test it out by right-clicking on the highlight and changing the color—you'll see that the color of the note changes as well. It's ill-implemented in my opinion because it hides text underneath the note icon.

I would recommend you to add notes and highlights separately with different colors to differentiate them.

Alternatively, you can use a third-party app which shows notes associated with highlights much better, like PDF Expert:

However, to add or save the notes (instead of just viewing them), you'll need to buy the full version for a hefty $80.

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