Currently in Section Translation, references based on a common template such as Cite Web are opened with the generic dialog for references. This requires two steps for editing the reference: opening the reference first and then opening the template.
This example sequence shows the steps:
This issue does not happen when using Visual Editor (mobile or desktop) directly. There the specific template dialog is opened directly.
A similar issue occurs in Content Translation as a regression. This was originally supported at T199512, but a regression makes it show both options on the desktop editor right now (T232330). Based on comments (T199512#4570362) this seemed related to the integration of Citoid.
I used as an example the translation of the "Formation" section of the Moon article from English to Spanish using Google Translate (example link).