Ok, I filed a bug and looks like it is not. I have to use another window to be able to show a progress view on top of keyboard.
Here is the response from Apple Engineers:
Quote:
Engineering has determined this issue behaves as intended based on the following information:
The keyboard will always appear at the front of the window which contains the keyboard-input accepting first responder, by design. SMS achieves its progress bar with another window.
We consider this issue closed. Thank you for taking the time to notify us of this issue.
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