Answer
Feature-linked annotation reflects the current state of features in the geodatabase, it is automatically updated when features are moved, edited, or deleted. In some instances, problems arise when the feature-linked annotations are not dynamically updated after the features are edited.
The annotations are not created from schematic datasets
Feature-linked annotations are not supported for schematic data. Labels on schematic features can be converted to standard feature annotations but cannot be converted to feature-linked annotations as the Feature Linked check box on the Convert Labels to Annotation dialog box is unavailable for any feature layer related to a schematic feature class.
For more information on how annotations work with schematic features, refer to the following ArcGIS Web Help page: Labeling schematic features.
The feature-linked annotations only references to a single feature class
Feature-linked annotations are only intended to work with a single feature class. However, it is possible to use scripts that can be executed to update the annotation layer.
For more information about creating and editing feature-linked annotation, refer to the following ArcGIS Web Help page: About editing feature-linked annotation.
The tool used to create the feature-linked annotation
For aviation annotation feature classes, the feature-linked annotations can be created using the Create Feature Linked Annotation tool. When annotation features are created with the Create Feature Linked Annotation tool, the annotations do not dynamically updated if the source feature is edited. This is by design. To update annotations created with such tool, run the Update Annotation tool.
Note:
The Create Feature Linked Annotation and Update Annotation tools require the Aviation extension.
For more information on how to create a feature-linked annotation feature class in a feature dataset, refer to the following ArcGIS Web Help page: Creating a feature-linked annotation feature class in a feature dataset.
To generate feature-linked annotation from selected features, refer to the following ArcGIS Web Help page: Generating feature-linked annotation from selected features.