In 1981 I was a grad student at CMU, which was running 4.1 or 4.2 at the time. I had spent the previous three years at IBM Research where someone had built some editing stuff into the command line machinery for CMS.
I implemented some input line editing stuff both for the Perq and as a module for the one of the UNIX shells and shared them with some of the systems folks at CMU. I do not know if they were adopted from my implementations ... I am inclined to think not ... there was significant skepticism of the value of command line editing among some of the systems folks.
But the idea of retrieving previous command lines and editing the command line was emerging as a thing in the early 1980s.