The selected mode stays in place for the edits that follow, until it is changed again.
AI edits are only charged when an edit succeeds. A failed or blocked edit costs nothing.
A Normal edit of a very large area costs 2 AI edits and comes back at a higher resolution. That means about 6 megapixels or more: for example half of a 12-megapixel photo, or a wide selection in a panorama about 14,000 pixels across or larger. The Make it! button shows the 2 AI edits before the edit runs.
Reference images, saved prompts, and the AI Edit Eraser work the same way in every mode.