Selection tool in Apple Pencil

I cannot fathom how the selection tool is supposed to work (Apple Pencil version 2) to be honest it has taken me ages to find any source that identified what the pencil that creates temporary dotted lines does. I now gather that it’s a selection tool for dragging items from one place to another but it doesn't work. So far I've tried using it in Freeform but i draw around text or images it simply disappears. Why Oh Why isn't there any Apple user info on these tools and how is it supposed to select and move content ? .