Hello gbuxton,
Let's see if we can find out where the formatting options have gone to. It sounds like possibly a setting or two may have been changed.
Change your Notes settings on iPad shows how to review your settings:
Change your Notes settings
Go to Settings
> Notes, then adjust any of the settings. For example:
• Default Account: Choose the default account for Siri and the Notes widget.
• “On My iPad” Account: Notes in this account appear only on your iPad. Your notes in iCloud aren’t affected.
• Access Notes from Lock Screen: Choose Always Create New Note or Resume Last Note. Or turn it off to prevent access from the Lock Screen.
Also, iPadOS 15.5 is the current version, you will want to make sure your iPad is updated.
Reach back out if you still need help with Notes.
Cheers!