Hello,
I'm investigating on behalf of a colleague who is struggling to take a new parcel polygon that is completely inscribed within a larger polygon and clip to create child parcels. In the below screenshot, the small, rectangular parcel is a new parcel, designated as the input feature, whereas the larger parcel is the target feature to succomb to the clip and result in a parcel with a 'donut' hole in it to clear the way for the rectangular parcel.

Is there possibly a limitation to the parcel editing clip in records-based transactions? Because the current workaround is to deactivate the record, this is the only way to have the clip run through, but the concern is obviously the transaction will not output a historic parcel.
Thanks