It’s working for me (iPadOS 15.4, Obsidian 1.1.1), with both finger and mouse. Did you try disabling community plugins in case one is interfering?
Also, the release notes you linked to are for the desktop version (note the very different version numbers). The release notes for mobile are on the app’s page in the app store, where you can see for version 1.1.1 “Fixed clicking on links while editing not working, allow tap and hold to edit a link.”