Let's see if I can describe this. When you have automation on a track, let's say a volume envelope, either in an automation lane or with the automation in focus, you make a selection using the smart tool. If you moved the cursor to the top of the track/lane, the cursor would become a sort of horizontal bar, and click-dragging would insert nodes on either side of the the selected section of envelop. You could raise lower the envelop for just that selected bit of the envelope. Saved a whole lot of clicking and adjusting.

With the new version I cannot get the smart cursor to change to this envelope tool. It's a major pita.

Anyone else confirm this?

No, sorry. It works exactly as it should here.
 
Make sure you have selected an area by clicking in the lower half of the lane before invoking the "node tool"

Yup, also working OK here in SPlat (including BT).  
 
+1 to Jonesey's suggestion to make sure the selection is active where the envelope is displayed. 
 

Duh. I'm not sure why I suddenly lost my cognition with that one.

You my man for the day, Jonesey.