I'm having a problem with Word for Mac regarding styles. I take other people's Word documents, identify local formatting (Italic, Bold, and Bold Italic, for instance, applied by hitting the buttons in the Ribbon), swap those for Character Styles of the same formatting, and then apply Paragraph Styles. Been doing this for years and have and no issues until recently. But starting in February, my Character Styles started being removed, visually, when I apply Paragraph Styles. For instance:

My cursor is in the "iii" line, showing that Bold Italic as a Character Style is applied to that text (while the Bold Character Style is applied to the text "Northeastern Writers"). When I apply a Paragraph Style to that Paragraph, the text looses it's formatting, at least visually:

According to the Current Style readout, the Bold Italic Character Style is still applied, but it no longer shows that it is applied. At some point in February, this started happening. Also in February, I started using an M1 Mac, so it could be Word, or it could be because of Apple Silicon, though that seems unlikely. I updated to Word for Mac 16.59 yesterday and unfortunately, this is still occurring.
I am aware of the "Automatically Update" Style setting, and this is not turned on for the style I applied (Heading- A) or any of my styles:

Nor is the "Automatically update document styles" setting turned on for this Document Template:

Anyone else experiencing this? Can anyone else reproduce this? Finally, any idea on how to make it stop? It's driving me nuts.
I should also point out that this is an intermittent problem. It doesn't happen for every paragraph I apply a Paragraph Style to, but it happens to most.