Offline dictation not working in iPadOS 14.x.x?

I have a new iPad Air 4 running the latest update to iPadOS (14.4.1) and notice that offline dictation is no longer working.

I have dictation enabled ("Enable Dictation") under Keyboard in General under Settings. When I go from online to offline, the microphone next to the space bar in the onscreen keyboard greys out (making it not longer functional). I can only get dictation live (ungreyed) again by going online. With my iPad Air 3, this feature worked fine as I use it regularly as I use my iPad Air for work while dictating comments during my day as I am working offline. I've played around with this a lot to try to figure out if it's a bug or not... I've turned dictation off, went offline, turned dictation back on, and all sorts of variations of that to no avail.

All I am able to find is that to turn on dictation but mine is already on. I turned it off and back on while online and also turned it off and back on while offline. Anyone know of a fix? It worked fine in iPadOS 13? It also works fine on my iPhone 12 Pro running iOS 14.4.1 while offline.. seems to be a bug with iPadOS14.