Hi, I've tested another time the issue and cannot reproduce it. Mention that the auto correction in icloud email works like that: if this feature is enabled all the words that are incorrectly spelled will be marked with red dots (as you can see in the attachment). You can check if the auto-correction is enabled by enter on Apple menu -> System Preferences -> Keyboard ->click on Text => 1st option from the right must be checked. Another simple method to check it will be to select the whole word spelled and right click => at the bottom you have the option "Check Spelling" that must be checked.
Bug 1523575 Comment 9 Edit History
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Hi, I've tested another time the issue and cannot reproduce it. Mention that the auto correction in icloud email works like that: if this feature is enabled all the words that are incorrectly spelled will be marked with red dots (as you can see in the attachment). You can check if the auto-correction is enabled by enter on Apple menu -> System Preferences -> Keyboard ->click on Text => 1st option from the right must be checked. Another simple method to check it will be to select the whole word spelled and right click => at the bottom you have the option "Check Spelling" that must be checked. Try that and let me know if you still have problem with the auto-correction