I have no idea what the issue is
Something strange is happening here.
The formatting option, in the iOS Notes app,, should NOT be iPad model dependent/specific.
The iOS Notes app should be the exact same app across ALL iPad models and the same no matter the iOS/iPadOS version.
Try backing up/moving all of your iOS Notes app notes to iCloud, delete the Notes app and then re-download the Notes app from the iOS App Store.
Make sure all of your notes are safely stored in iCloud. Just to make sure the notes are safe in iCloud, turn off iCloud on your iPad.
Then, delete the Notes app and re-install the app using this App Store link below.
https://apps.apple.com/us/app/notes/id1110145109
Then turn iCloud back on your iPad, and, if you want, move all of your notes back inside of your iPad from iCloud.
Best of Luck to You!