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edit() function usage
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Yes, the file exists in /private/var/.... and I can edit it. After saving I then close that file (editor BBEdit). But when I check 'notes' it has not changed.

Using 'TextEdit' it tells me:
sh: TextEdit: command not found
Error: EDITOR returned non-zero

Then tried 'update books set notes=edit(notes,'nano') WHERE id=1;' which DID work. 

So it seems BBEdit is doing something wonky but at least I got it working. I had set 
Thanks to all for the suggestions.