This is a legitimate bug -- no point in buying an iPad to grade scanned exams that you've made available offline (a.k.a. downloaded) from Dropbox if Adobe insists on ignoring the locally-stored copy and accessing an Internet connection that doesn't exist, say, on a long plane flight. I'm also inquiring at dropbox to see if the problem might be on their end. Would love for this to get to an engineer to test.
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May I suggest a workaround as followings,
1. Open the offline Dropbox PDF, then tap "..." at the upper right hand corner and popover menu should appear as below,
2. Tap "Export" in the popover menu and next popover menu should appear as below,
3. In the popover menu, choose "Open In..." and next popover menu should appear as below,
4. Choose "Copy to Adobe Acrobat"
5. The copy of offline Dropbox PDF should be copied into Acrobat's "Local" and it should be opened
6. Make changes to the PDF in Acrobat
7. After done with the changes, choose "Share" (the rightmost one) icon at the bottom toolbar and the "Share" popover menu should appear as below,
8. Choose "Open in..." and the popover menu should appear like below,
9. Choose "Copy to Dropbox"
10. "Save to Dropbox" screen should appear like below,
11. Tap "Save" button
13. Tap "Replace" button, and the PDF should be saved back to Dropbox app and
14. The PDF will be pending for saving back to the Dropbox cloud like below,
As soon as the device is online again, the PDF should be saved back to Dropbox cloud automactically.
Sorry for any inconvenience and hope this work for you.