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I'm creating a curved path which is being used as a placeholder for data merge content. I create the path, click on it, then double-click the field in the data merge window.
It places <<fieldName>> text in the frame, but it's not aligned to the path.
It works fine when I manually add text-on-path or "fill with sample content", so I've missed something.
You need to select the text path insertion point and apply your tag. It's likely that you selected the parent frame instead:
