diff --git a/docs/plans/2026-03-19-fix-source-cursor-offset.md b/docs/plans/2026-03-19-fix-source-cursor-offset.md
index a81730bd..a35faeb5 100644
--- a/docs/plans/2026-03-19-fix-source-cursor-offset.md
+++ b/docs/plans/2026-03-19-fix-source-cursor-offset.md
@@ -480,10 +480,10 @@ Append to the end of `src/editor/__tests__/FormattingToolbar.test.tsx` (after li
  * Element-type selections occur when cursor is at structural boundaries (empty lines, etc).
  */
 function InsertMultilineAndSelectElement({ 
-  children, 
+  structure, 
   elementOffset 
 }: { 
-  children: Array<{ type: 'text'; content: string } | { type: 'linebreak' }>
+  structure: Array<{ type: 'text'; content: string } | { type: 'linebreak' }>
   elementOffset: number // Child index for element-type selection
 }) {
   const [editor] = useLexicalComposerContext()
@@ -493,9 +493,9 @@ function InsertMultilineAndSelectElement({
       root.clear()
       const codeNode = $createCodeNode('markdown')
       
-      for (const child of children) {
-        if (child.type === 'text') {
-          codeNode.append($createTextNode(child.content))
+      for (const node of structure) {
+        if (node.type === 'text') {
+          codeNode.append($createTextNode(node.content))
         } else {
           codeNode.append($createLineBreakNode())
         }
@@ -508,18 +508,18 @@ function InsertMultilineAndSelectElement({
       selection.focus.set(codeNode.getKey(), elementOffset, 'element')
       $setSelection(selection)
     })
-  }, [editor, children, elementOffset])
+  }, [editor, structure, elementOffset])
   return null
 }
 
 interface TestElementSelectionEditorProps {
-  children: Array<{ type: 'text'; content: string } | { type: 'linebreak' }>
+  structure: Array<{ type: 'text'; content: string } | { type: 'linebreak' }>
   elementOffset: number
   onEditorReady?: (editor: LexicalEditor) => void
 }
 
 function TestElementSelectionEditor({ 
-  children, 
+  structure, 
   elementOffset, 
   onEditorReady 
 }: TestElementSelectionEditorProps) {
@@ -540,7 +540,7 @@ function TestElementSelectionEditor({
     <LexicalComposer initialConfig={sourceTestConfig}>
       <ContentEditable data-testid="editor" />
       <InsertMultilineAndSelectElement 
-        children={children} 
+        structure={structure} 
         elementOffset={elementOffset} 
       />
       <EditorRefCapture editorRef={editorRef} />
@@ -554,16 +554,17 @@ describe('FormattingToolbar element-type selection bug fix', () => {
     cleanup()
   })
 
-  it('inserts bold at element-type selection on empty line', async () => {
+  it('inserts bold at element-type selection at start of line after empty line', async () => {
     const user = userEvent.setup()
     let testEditor: LexicalEditor | null = null
     
-    // Structure: "line1\n\nline3" with element selection at empty line position
+    // Structure: "line1\n\nline3"
     // Children: [text:"line1"(5), lb(1), lb(1), text:"line3"(5)]
-    // Element offset 3 = after children[0..2] = 5+1+1 = position 7 (start of empty line visually)
+    // Element offset 3 = after children[0..2] = 5+1+1 = position 7 (start of line3)
+    // This is the position where cursor lands after pressing down-arrow from line1
     render(
       <TestElementSelectionEditor 
-        children={[
+        structure={[
           { type: 'text', content: 'line1' },
           { type: 'linebreak' },
           { type: 'linebreak' },
@@ -586,6 +587,39 @@ describe('FormattingToolbar element-type selection bug fix', () => {
     })
   })
 
+  it('inserts bold at element-type selection ON empty line', async () => {
+    const user = userEvent.setup()
+    let testEditor: LexicalEditor | null = null
+    
+    // Structure: "line1\n\nline3"
+    // Children: [text:"line1"(5), lb(1), lb(1), text:"line3"(5)]
+    // Element offset 2 = after children[0..1] = 5+1 = position 6 (on the empty line)
+    // This is the position where cursor lands when clicking on the empty line
+    render(
+      <TestElementSelectionEditor 
+        structure={[
+          { type: 'text', content: 'line1' },
+          { type: 'linebreak' },
+          { type: 'linebreak' },
+          { type: 'text', content: 'line3' },
+        ]}
+        elementOffset={2}
+        onEditorReady={(e) => { testEditor = e }} 
+      />
+    )
+
+    await user.click(screen.getByRole('button', { name: 'Bold' }))
+
+    await vi.waitFor(() => {
+      testEditor?.getEditorState().read(() => {
+        const root = $getRoot()
+        const text = root.getTextContent()
+        // Bold markers should be at position 6 (on empty line)
+        expect(text).toBe('line1\n****\nline3')
+      })
+    })
+  })
+
   it('inserts bold at element-type selection at document start', async () => {
     const user = userEvent.setup()
     let testEditor: LexicalEditor | null = null
@@ -593,7 +627,7 @@ describe('FormattingToolbar element-type selection bug fix', () => {
     // Element selection at offset 0 (before first child)
     render(
       <TestElementSelectionEditor 
-        children={[
+        structure={[
           { type: 'text', content: 'hello' },
         ]}
         elementOffset={0}
@@ -620,7 +654,7 @@ describe('FormattingToolbar element-type selection bug fix', () => {
     // Element selection at offset 1 (after first/only child) = position 5
     render(
       <TestElementSelectionEditor 
-        children={[
+        structure={[
           { type: 'text', content: 'hello' },
         ]}
         elementOffset={1}
@@ -648,7 +682,7 @@ describe('FormattingToolbar element-type selection bug fix', () => {
     // Element selection at offset 2 = after lb, before "line2" = position 6
     render(
       <TestElementSelectionEditor 
-        children={[
+        structure={[
           { type: 'text', content: 'line1' },
           { type: 'linebreak' },
           { type: 'text', content: 'line2' },
@@ -669,16 +703,16 @@ describe('FormattingToolbar element-type selection bug fix', () => {
     })
   })
 
-  it('inserts link at element-type selection on empty line', async () => {
+  it('inserts link at element-type selection between lines', async () => {
     const user = userEvent.setup()
     let testEditor: LexicalEditor | null = null
     
-    // Structure: "line1\n\nline3" with element selection at empty line position
+    // Structure: "line1\n\nline3" with element selection at start of line3
     // Children: [text:"line1"(5), lb(1), lb(1), text:"line3"(5)]
     // Element offset 3 = after children[0..2] = 5+1+1 = position 7
     render(
       <TestElementSelectionEditor 
-        children={[
+        structure={[
           { type: 'text', content: 'line1' },
           { type: 'linebreak' },
           { type: 'linebreak' },
@@ -824,4 +858,4 @@ The fix is minimal and targeted:
 
 Test coverage:
 - 11 unit tests for `getAbsoluteOffset` covering text-type, element-type, and edge cases
-- 7 integration tests: 5 element-type selection tests (the actual bug scenario) + 2 text-type multiline tests
+- 8 integration tests: 6 element-type selection tests (the actual bug scenario) + 2 text-type multiline tests