In Workflowy, a tag is active the moment you type a space after the tag. You can still be editing the line where you entered a tag, yet all the tags on the line are active and can be clicked on.
In Dynalist, all tags on the line being edited are inactive until after you move off that line.
Why is that? I find the Workflowy method better.
It’s the same reason why people want WYSIWYG.
An active tag is the same as bold and italics in Dynalist – if you’re editing it, it won’t render. An active tag is how tags are rendered, just like how dates (![2018-02-04]) are rendered as a relative date.
I hope that answers the question.
That does answer the question…thank you.
The reason I mention it is that although Dynalist has way more features, the typing experience is noticeably smoother on Workflowy. I was trying to figure out why. I’m often selecting the wrong item or line and it’s distracting.
One obvious source of “displayed text jumping around” are links which I use a lot. There’s nothing to be done there, I don’t think. These naturally change format significantly between editing and after moving off that item. But, the change in format is the whole point!!
Maybe it’s just more practice on my part! 
We can add utilities to help as well. For example, many requested to be able to use Esc to blur the current item, and Esc again (or some other key) will put your cursor back in place.