diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/note-block/note-block.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/note-block/note-block.tsx
index 24c17c80c6..24af88f93e 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/note-block/note-block.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/note-block/note-block.tsx
@@ -35,33 +35,47 @@ const NoteMarkdown = memo(function NoteMarkdown({ content }: { content: string }
     <ReactMarkdown
       remarkPlugins={[remarkGfm]}
       components={{
-        p: ({ children }) => <p className='mb-0 text-[#E5E5E5] text-sm'>{children}</p>,
+        p: ({ children }) => (
+          <p className='!mt-0 !-mb-4 text-[#E5E5E5] text-sm leading-tight'>{children}</p>
+        ),
         h1: ({ children }) => (
-          <h1 className='mt-0 mb-[-2px] font-semibold text-[#E5E5E5] text-lg'>{children}</h1>
+          <h1 className='!mt-0 !-mb-4 font-semibold text-[#E5E5E5] text-lg leading-tight'>
+            {children}
+          </h1>
         ),
         h2: ({ children }) => (
-          <h2 className='mt-0 mb-[-2px] font-semibold text-[#E5E5E5] text-base'>{children}</h2>
+          <h2 className='!mt-0 !-mb-4 font-semibold text-[#E5E5E5] text-base leading-tight'>
+            {children}
+          </h2>
         ),
         h3: ({ children }) => (
-          <h3 className='mt-0 mb-[-2px] font-semibold text-[#E5E5E5] text-sm'>{children}</h3>
+          <h3 className='!mt-0 !-mb-4 font-semibold text-[#E5E5E5] text-sm leading-tight'>
+            {children}
+          </h3>
         ),
         h4: ({ children }) => (
-          <h4 className='mt-0 mb-[-2px] font-semibold text-[#E5E5E5] text-xs'>{children}</h4>
+          <h4 className='!mt-0 !-mb-4 font-semibold text-[#E5E5E5] text-xs leading-tight'>
+            {children}
+          </h4>
         ),
         ul: ({ children }) => (
-          <ul className='-mt-[2px] mb-0 list-disc pl-4 text-[#E5E5E5] text-sm'>{children}</ul>
+          <ul className='!-mt-4 !-mb-4 [&_li>ul]:!mt-0 [&_li>ul]:!mb-0 [&_li>ol]:!mt-0 [&_li>ol]:!mb-0 list-disc pl-4 text-[#E5E5E5] text-sm leading-tight'>
+            {children}
+          </ul>
         ),
         ol: ({ children }) => (
-          <ol className='-mt-[2px] mb-0 list-decimal pl-4 text-[#E5E5E5] text-sm'>{children}</ol>
+          <ol className='!-mt-4 !-mb-4 [&_li>ul]:!mt-0 [&_li>ul]:!mb-0 [&_li>ol]:!mt-0 [&_li>ol]:!mb-0 list-decimal pl-4 text-[#E5E5E5] text-sm leading-tight'>
+            {children}
+          </ol>
         ),
-        li: ({ children }) => <li className='mb-0'>{children}</li>,
+        li: ({ children }) => <li className='!mb-0 leading-tight'>{children}</li>,
         code: ({ inline, children }: any) =>
           inline ? (
-            <code className='rounded bg-[var(--divider)] px-1 py-0.5 text-[#F59E0B] text-xs'>
+            <code className='break-words rounded bg-[var(--divider)] px-1 py-0.5 text-[#F59E0B] text-xs'>
               {children}
             </code>
           ) : (
-            <code className='block rounded bg-[#1A1A1A] p-2 text-[#E5E5E5] text-xs'>
+            <code className='block whitespace-pre-wrap break-words rounded bg-[#1A1A1A] p-2 text-[#E5E5E5] text-xs'>
               {children}
             </code>
           ),
@@ -78,7 +92,7 @@ const NoteMarkdown = memo(function NoteMarkdown({ content }: { content: string }
         strong: ({ children }) => <strong className='font-semibold text-white'>{children}</strong>,
         em: ({ children }) => <em className='text-[#B8B8B8]'>{children}</em>,
         blockquote: ({ children }) => (
-          <blockquote className='m-0 border-[#F59E0B] border-l-2 pl-3 text-[#B8B8B8] italic'>
+          <blockquote className='!mt-0 !-mb-4 border-[#F59E0B] border-l-2 pl-3 text-[#B8B8B8] italic'>
             {children}
           </blockquote>
         ),
@@ -187,9 +201,7 @@ export const NoteBlock = memo(function NoteBlock({ id, data }: NodeProps<NoteBlo
             ) : showMarkdown ? (
               <NoteMarkdown content={content} />
             ) : (
-              <p className='whitespace-pre-wrap text-[#E5E5E5] text-sm leading-relaxed'>
-                {content}
-              </p>
+              <p className='whitespace-pre-wrap text-[#E5E5E5] text-sm leading-snug'>{content}</p>
             )}
           </div>
         </div>
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel-new/components/copilot/components/user-input/hooks/use-mention-data.ts b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel-new/components/copilot/components/user-input/hooks/use-mention-data.ts
index ee40d2671d..4a0bb28ca6 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel-new/components/copilot/components/user-input/hooks/use-mention-data.ts
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel-new/components/copilot/components/user-input/hooks/use-mention-data.ts
@@ -1,6 +1,7 @@
 'use client'
 
 import { useCallback, useEffect, useState } from 'react'
+import { shallow } from 'zustand/shallow'
 import { createLogger } from '@/lib/logs/console/logger'
 import { useWorkflowRegistry } from '@/stores/workflows/registry/store'
 import { useWorkflowStore } from '@/stores/workflows/workflow/store'
@@ -109,7 +110,11 @@ export function useMentionData(props: UseMentionDataProps) {
   const [workflowBlocks, setWorkflowBlocks] = useState<WorkflowBlockItem[]>([])
   const [isLoadingWorkflowBlocks, setIsLoadingWorkflowBlocks] = useState(false)
 
-  const workflowStoreBlocks = useWorkflowStore((state) => state.blocks)
+  // Only subscribe to block keys to avoid re-rendering on position updates
+  const blockKeys = useWorkflowStore(
+    useCallback((state) => Object.keys(state.blocks), []),
+    shallow
+  )
 
   // Use workflow registry as source of truth for workflows
   const registryWorkflows = useWorkflowRegistry((state) => state.workflows)
@@ -139,15 +144,19 @@ export function useMentionData(props: UseMentionDataProps) {
 
   /**
    * Syncs workflow blocks from store
+   * Only re-runs when blocks are added/removed (not on position updates)
    */
   useEffect(() => {
     const syncWorkflowBlocks = async () => {
-      if (!workflowId || !workflowStoreBlocks || Object.keys(workflowStoreBlocks).length === 0) {
+      if (!workflowId || blockKeys.length === 0) {
         setWorkflowBlocks([])
         return
       }
 
       try {
+        // Fetch current blocks from store
+        const workflowStoreBlocks = useWorkflowStore.getState().blocks
+
         const { registry: blockRegistry } = await import('@/blocks/registry')
         const mapped = Object.values(workflowStoreBlocks).map((b: any) => {
           const reg = (blockRegistry as any)[b.type]
@@ -169,7 +178,7 @@ export function useMentionData(props: UseMentionDataProps) {
     }
 
     syncWorkflowBlocks()
-  }, [workflowStoreBlocks, workflowId])
+  }, [blockKeys, workflowId])
 
   /**
    * Ensures past chats are loaded
@@ -323,10 +332,10 @@ export function useMentionData(props: UseMentionDataProps) {
     if (!workflowId) return
     logger.debug('ensureWorkflowBlocksLoaded called', {
       workflowId,
-      storeBlocksCount: Object.keys(workflowStoreBlocks || {}).length,
+      storeBlocksCount: blockKeys.length,
       workflowBlocksCount: workflowBlocks.length,
     })
-  }, [workflowId, workflowStoreBlocks, workflowBlocks.length])
+  }, [workflowId, blockKeys.length, workflowBlocks.length])
 
   return {
     // State
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel-new/components/editor/editor.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel-new/components/editor/editor.tsx
index 05eed70d54..5d32d3305e 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel-new/components/editor/editor.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel-new/components/editor/editor.tsx
@@ -210,9 +210,14 @@ export function Editor() {
             />
           ) : (
             <h2
-              className='min-w-0 flex-1 cursor-pointer truncate pr-[8px] font-medium text-[14px] text-[var(--white)] dark:text-[var(--white)]'
+              className='min-w-0 flex-1 cursor-pointer select-none truncate pr-[8px] font-medium text-[14px] text-[var(--white)] dark:text-[var(--white)]'
               title={title}
               onDoubleClick={handleStartRename}
+              onMouseDown={(e) => {
+                if (e.detail === 2) {
+                  e.preventDefault()
+                }
+              }}
             >
               {title}
             </h2>
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/hooks/use-node-utilities.ts b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/hooks/use-node-utilities.ts
index f8c2e5456c..ac6bf6170e 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/hooks/use-node-utilities.ts
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/hooks/use-node-utilities.ts
@@ -11,7 +11,7 @@ const DEFAULT_CONTAINER_HEIGHT = 300
  * Hook providing utilities for node position, hierarchy, and dimension calculations
  */
 export function useNodeUtilities(blocks: Record<string, any>) {
-  const { getNodes, project } = useReactFlow()
+  const { getNodes } = useReactFlow()
 
   /**
    * Check if a block is a container type (loop, parallel, or subflow)
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/workflow.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/workflow.tsx
index 23c81bb648..f47e7732dd 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/workflow.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/workflow.tsx
@@ -110,7 +110,7 @@ const WorkflowContent = React.memo(() => {
   // Hooks
   const params = useParams()
   const router = useRouter()
-  const { project, getNodes, fitView } = useReactFlow()
+  const { screenToFlowPosition, getNodes, fitView } = useReactFlow()
   const { emitCursorUpdate } = useSocket()
 
   // Get workspace ID from the params
@@ -170,7 +170,7 @@ const WorkflowContent = React.memo(() => {
   // Get diff analysis for edge reconstruction
   const { diffAnalysis, isShowingDiff, isDiffReady } = useWorkflowDiffStore()
 
-  // Reconstruct deleted edges when viewing original workflow and filter trigger edges
+  // Reconstruct deleted edges when viewing original workflow and filter out invalid edges
   const edgesForDisplay = useMemo(() => {
     let edgesToFilter = edges
 
@@ -237,7 +237,21 @@ const WorkflowContent = React.memo(() => {
       // Combine existing edges with reconstructed deleted edges
       edgesToFilter = [...edges, ...reconstructedEdges]
     }
-    return edgesToFilter
+
+    // Filter out edges that connect to/from annotation-only blocks (note blocks)
+    // These blocks don't have handles and shouldn't have connections
+    return edgesToFilter.filter((edge) => {
+      const sourceBlock = blocks[edge.source]
+      const targetBlock = blocks[edge.target]
+
+      // Remove edge if either source or target is an annotation-only block
+      if (!sourceBlock || !targetBlock) return false
+      if (isAnnotationOnlyBlock(sourceBlock.type) || isAnnotationOnlyBlock(targetBlock.type)) {
+        return false
+      }
+
+      return true
+    })
   }, [edges, isShowingDiff, isDiffReady, diffAnalysis, blocks])
 
   // User permissions - get current user's specific permissions from context
@@ -680,7 +694,11 @@ const WorkflowContent = React.memo(() => {
           // Auto-connect logic for blocks inside containers
           const isAutoConnectEnabled = useGeneralStore.getState().isAutoConnectEnabled
           let autoConnectEdge
-          if (isAutoConnectEnabled && data.type !== 'starter') {
+          if (
+            isAutoConnectEnabled &&
+            data.type !== 'starter' &&
+            !isAnnotationOnlyBlock(data.type)
+          ) {
             if (existingChildBlocks.length > 0) {
               // Connect to the nearest existing child block within the container
               const closestBlock = existingChildBlocks
@@ -694,7 +712,7 @@ const WorkflowContent = React.memo(() => {
                 .sort((a, b) => a.distance - b.distance)[0]?.block
 
               if (closestBlock) {
-                // Don't create edges into trigger blocks
+                // Don't create edges into trigger blocks or annotation blocks
                 const targetBlockConfig = getBlock(data.type)
                 const isTargetTrigger =
                   data.enableTriggerMode === true || targetBlockConfig?.category === 'triggers'
@@ -769,10 +787,14 @@ const WorkflowContent = React.memo(() => {
           // Regular auto-connect logic
           const isAutoConnectEnabled = useGeneralStore.getState().isAutoConnectEnabled
           let autoConnectEdge
-          if (isAutoConnectEnabled && data.type !== 'starter') {
+          if (
+            isAutoConnectEnabled &&
+            data.type !== 'starter' &&
+            !isAnnotationOnlyBlock(data.type)
+          ) {
             const closestBlock = findClosestOutput(position)
             if (closestBlock) {
-              // Don't create edges into trigger blocks
+              // Don't create edges into trigger blocks or annotation blocks
               const targetBlockConfig = getBlock(data.type)
               const isTargetTrigger =
                 data.enableTriggerMode === true || targetBlockConfig?.category === 'triggers'
@@ -842,7 +864,7 @@ const WorkflowContent = React.memo(() => {
         const baseName = type === 'loop' ? 'Loop' : 'Parallel'
         const name = getUniqueBlockName(baseName, blocks)
 
-        const centerPosition = project({
+        const centerPosition = screenToFlowPosition({
           x: window.innerWidth / 2,
           y: window.innerHeight / 2,
         })
@@ -891,7 +913,7 @@ const WorkflowContent = React.memo(() => {
       }
 
       // Calculate the center position of the viewport
-      const centerPosition = project({
+      const centerPosition = screenToFlowPosition({
         x: window.innerWidth / 2,
         y: window.innerHeight / 2,
       })
@@ -906,11 +928,11 @@ const WorkflowContent = React.memo(() => {
       // Auto-connect logic
       const isAutoConnectEnabled = useGeneralStore.getState().isAutoConnectEnabled
       let autoConnectEdge
-      if (isAutoConnectEnabled && type !== 'starter') {
+      if (isAutoConnectEnabled && type !== 'starter' && !isAnnotationOnlyBlock(type)) {
         const closestBlock = findClosestOutput(centerPosition)
         logger.info('Closest block found:', closestBlock)
         if (closestBlock) {
-          // Don't create edges into trigger blocks
+          // Don't create edges into trigger blocks or annotation blocks
           const targetBlockConfig = blockConfig
           const isTargetTrigger = enableTriggerMode || targetBlockConfig?.category === 'triggers'
 
@@ -977,7 +999,7 @@ const WorkflowContent = React.memo(() => {
       )
     }
   }, [
-    project,
+    screenToFlowPosition,
     blocks,
     addBlock,
     addEdge,
@@ -1014,7 +1036,7 @@ const WorkflowContent = React.memo(() => {
         }
 
         const bounds = canvasElement.getBoundingClientRect()
-        const position = project({
+        const position = screenToFlowPosition({
           x: detail.clientX - bounds.left,
           y: detail.clientY - bounds.top,
         })
@@ -1041,7 +1063,7 @@ const WorkflowContent = React.memo(() => {
         'toolbar-drop-on-empty-workflow-overlay',
         handleOverlayToolbarDrop as EventListener
       )
-  }, [project, handleToolbarDrop])
+  }, [screenToFlowPosition, handleToolbarDrop])
 
   /**
    * Recenter canvas when diff appears
@@ -1090,7 +1112,7 @@ const WorkflowContent = React.memo(() => {
         if (!data?.type) return
 
         const reactFlowBounds = event.currentTarget.getBoundingClientRect()
-        const position = project({
+        const position = screenToFlowPosition({
           x: event.clientX - reactFlowBounds.left,
           y: event.clientY - reactFlowBounds.top,
         })
@@ -1106,7 +1128,7 @@ const WorkflowContent = React.memo(() => {
         logger.error('Error dropping block on ReactFlow canvas:', { err })
       }
     },
-    [project, handleToolbarDrop]
+    [screenToFlowPosition, handleToolbarDrop]
   )
 
   const handleCanvasPointerMove = useCallback(
@@ -1114,14 +1136,14 @@ const WorkflowContent = React.memo(() => {
       const target = event.currentTarget as HTMLElement
       const bounds = target.getBoundingClientRect()
 
-      const position = project({
+      const position = screenToFlowPosition({
         x: event.clientX - bounds.left,
         y: event.clientY - bounds.top,
       })
 
       emitCursorUpdate(position)
     },
-    [project, emitCursorUpdate]
+    [screenToFlowPosition, emitCursorUpdate]
   )
 
   const handleCanvasPointerLeave = useCallback(() => {
@@ -1144,7 +1166,7 @@ const WorkflowContent = React.memo(() => {
 
       try {
         const reactFlowBounds = event.currentTarget.getBoundingClientRect()
-        const position = project({
+        const position = screenToFlowPosition({
           x: event.clientX - reactFlowBounds.left,
           y: event.clientY - reactFlowBounds.top,
         })
@@ -1188,7 +1210,7 @@ const WorkflowContent = React.memo(() => {
         logger.error('Error in onDragOver', { err })
       }
     },
-    [project, isPointInLoopNode, getNodes]
+    [screenToFlowPosition, isPointInLoopNode, getNodes]
   )
 
   // Initialize workflow when it exists in registry and isn't active
@@ -1584,8 +1606,8 @@ const WorkflowContent = React.memo(() => {
       // Store currently dragged node ID
       setDraggedNodeId(node.id)
 
-      // Emit collaborative position update during drag for smooth real-time movement
-      collaborativeUpdateBlockPosition(node.id, node.position, false)
+      // Note: We don't emit position updates during drag to avoid flooding socket events.
+      // The final position is sent in onNodeDragStop for collaborative updates.
 
       // Get the current parent ID of the node being dragged
       const currentParentId = blocks[node.id]?.data?.parentId || null
@@ -1721,14 +1743,7 @@ const WorkflowContent = React.memo(() => {
         }
       }
     },
-    [
-      getNodes,
-      potentialParentId,
-      blocks,
-      getNodeAbsolutePosition,
-      getNodeDepth,
-      collaborativeUpdateBlockPosition,
-    ]
+    [getNodes, potentialParentId, blocks, getNodeAbsolutePosition, getNodeDepth]
   )
 
   // Add in a nodeDrag start event to set the dragStartParentId
@@ -1855,7 +1870,8 @@ const WorkflowContent = React.memo(() => {
 
         // Auto-connect when moving an existing block into a container
         const isAutoConnectEnabled = useGeneralStore.getState().isAutoConnectEnabled
-        if (isAutoConnectEnabled) {
+        // Don't auto-connect annotation blocks (like note blocks)
+        if (isAutoConnectEnabled && !isAnnotationOnlyBlock(node.data?.type)) {
           // Existing children in the target container (excluding the moved node)
           const existingChildBlocks = Object.values(blocks).filter(
             (b) => b.data?.parentId === potentialParentId && b.id !== node.id