i find that when the html module permissions override the page permissions removing edit from the user who is in a page edit group, the pencil is indeed removed so the content cant be directly edited. However, the gear and the move icons are still present and the page user can edit the restricted module settings, change the permissions, then edit the module content.

My experience is with the Mandeeps liveHTML however he has confirmed that the behavior is also in the native dnn html module and directed me to seek info here.

How could it be that module content permissions are not tied to the settings and location editing on the page? any Ideas? Is this a known thing?