Originally Posted by semlar
There's a new frame widget method called SetFlattensRenderLayers, and essentially what it does is treat all of the children of a frame as if they were being drawn on the same level, as a part of it, rather than on separate layers that can overlap other frames.
From your descriptions it sounds like this is enabled for the chat frame, which means you'd either have to move the entire parent to a higher layer, reparent the edit box, or just disable that setting.
I don't seem to be able to log into the beta right now so I can't check.
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GetFlattensRenderLayers returns false for the editbox and all parent frames.