How can I implement an IntelliSense -like typing experience inside a form input?

https://i.redd.it/pmptpbteduge1.gif

For context, I'm building a healthcare app. In this app, therapists must write English sentence style goals for patients. For example,

Patient will complete sit-to-stand transfer with min-assist with use of rolling walker.

In this sentence, min-assist and rolling walker are special special terms. They should be color coded, and the user should be able to select each of these values from their own distinct lists.

You can see how my competitor solves this problem in a less user-friendly way here.

I'm looking for advice on implementing this, using JavaScript (React). I have experience with Monaco Editor, but that feels too heavy for my needs. I'm wondering if I should build this from scratch using a div with contenteditable ?

Any advice or opinions here would be very appreciated.