I'm trying to edit a library cloud item from the links palette in Indesign CC. With normal links you can click on the pencil icon in the lower right hand corner of the links palette and then the linked file will open in its respective application for you to edit. However with items that are linked to the creative cloud libraries the pencil icon is grayed-out/unavailable. Is there a work around to this? Will Adobe eventually make this feature functional?
Creative Cloud Libraries is a work in progress. You can't edit in the Links panel but sometimes you can in the CC Libraries panel:
Notice in your library the icon indicating what kind of file it is. If I right-click on a "PS" (Photoshop-created file), and choose Edit, I get a message that says in part "This item isn't directly editable in InDesign but can be placed in a document...." But if you selected it in Photoshop, you could edit it.
If I choose an item marked with "ID", it is an InDesign-created item. If I right-click on it and choose Edit, I can edit it in a new window.
I'm sure in time you will be able to launch Photoshop or Illustrator to open up and edit other kinds of items.