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It is your choice on sanding. Sanding down the crack/tape area below grade will make the flattest patch. The alternative is feathering out your joint compound further to hide the bump. You’ll be surprised how thick tape seems when you’re going for a smooth finish.
I like the flat (presanded) option because the bump option bothers me even though nobody else sees the difference.
Are you using https? On mine the app doesn’t allow just http.