This is a UI improvement: Replace the button (see below) "Render Math"/"Reset Math" (and perhaps the "show feedback" button) with switches. Switches show the current state and can lead to a more intuitive UI.
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I agree that the current state should be communicated better, but i don't think switches with labels could fit into the toolbar. We could put them into some sort of overflow menu.
Alternatively, we could keep the toggle buttons but give them a distinct active style to show the state. I would also suggest using icons instead of text to save space and avoid potentially confusing wording. I've made a quick mockup:
The way it looks in my screenshot above, a switch should be possible. A problem with toggle buttons is that they don't communicate their state as clearly: Even with a distinct active style you are still missing a passive style. I guess one could give them colors like red and green/blue but that still doesn't really say "hey. you can toggle me".
A problem with toggle buttons is that they don't communicate their state as clearly
That's true, but i think they are still a good compromise to save space. The concept of toggle buttons is fairly well known. Most of our users have probably used Microsoft Word at some point:
They will start out in the active state which definitely says "Hey, i'm not like the other buttons."
Alternatively, we could put checkboxes or switches in an overflow menu: