Is rephrasing supposed to do nothing??? || "########### (rephrased)"

Chat rephrasing from my perspective just adds a “(rephrased)” dropdown to a message that’s been tagged. This has been my experience since this feature was rolled out. It just doesn’t do what it says it did.
I’m not sure if this is an issue exclusive to Creatures of Sonaria or what, but this is a weird issue to have. I don’t understand what could’ve caused it.

Expected behavior

I should be seeing a non-tagged, rephrased message.