eg - CompanyName (field) pre-populates with Company.Name (variable) and variable updates when field changes.

PandaDoc's "AI" bot tool gives the below instructions (which are wrong) to do this. But it would be great if this actually worked.

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Yes, you can create a field in your PandaDoc template that prepopulates with the Company.Name variable and allows the client to edit it, updating the variable throughout the document. Here's how:
In your template, go to the Variables tab and find the Company.Name variable.
Copy the variable name without square brackets.
Click on a field in your template and select 'Properties' on the floating panel.
Paste the copied variable into the "Merge field" section.
When you create and send the document, the recipient will see the pre-filled Company.Name data and can update this field. The updated information will be reflected throughout the document wherever the variable is used, as long as the field is assigned to the recipient.