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There is a custom multi-line text field "Test Case" which we are using in our Jira Cloud instance.
I added this field in one project but cannot see the formatting toolbar.
But I added the same field in another project and I can see the toolbar there. Please see the highlighted section in the below screenshot.
Can you please tell me the reason for that?
You probably need to change the field to a Wiki renderer for that field. Go to the Field Configuration for that project, search for the field, and then change the renderer.