Greetings, Mike!
Just to reassure you that you are not crazy (I need such reassurance myself, from time to time!) There is a setting for text page resources that enables "moodle auto format". This will give you automatic hyperlinks. But I think most people do not use the text page resource very often! Maybe that was the setting that was tickling your memory.
atw
Text editors
converting a URL to a hyperlink automatically
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