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To highlight text in a video tutorial, first add a screenshot to the timeline. Use the pen tool to select the rectangle tool and drag a rectangle over the desired text. Access the effect controls to adjust the shape settings and change the fill color to yellow for highlighting. Under opacity, set the blend mode to multiply to achieve the highlight effect. To animate the highlight, search for the crop effect and apply it to the graphic layer. Position the playhead at the start of the graphic in the effect controls and adjust the right value in the crop effect to create a dynamic highlight animation.