When creating new records, the character counter shows on the bottom-right of the text box and displays a warning when over the limit:

This does not occur when editing existing records. There is no indication when the text character count is over the limit in edit mode and this confuses users when they get an error message upon trying to submit a form:

This issue was described here:
https://community.esri.com/t5/arcgis-survey123-questions/display-character-count-or-warn-of-exceedin...