Continuity markup button does not show up in Preview
I often annotate pdf's on my Mac using Apple Pencil on my iPad. This option appears only when opening the pdf with "Quick Look" or using right-click, quick actions, markup. It would be nice to have this option in Preview. The Apple document article says this is possible, but I've never seen it.
Is this a bug in Preview or a mistake in the Apple documentation?
(all devices updated and same ID logged in, etc)
MacBook Pro 13″, macOS 10.15