A test recorded against this demo fails on playback:
http://demos.kendoui.com/web/grid/editing-inline.html

Because both Edit and Delete actions are recorded and played back as regular clicks.

The easiest work-around is to temporary exclude the Kendo Grid translator from the Project - Settings - Translators - Html. One can also add the Edit and Update anchor elements to the repository and build chained find expressions according to the TextContent, see the "Flexible Locators" video for reference: http://tv.telerik.com/watch/automated-testing-tools/test-studio-flexible-locators