Dictation is not working on MacBook

I can use voice dictation on Word documents by using the Dictate icon in the Word menu, but it doesn't work if I use the Apple keyboard shortcut...I can hear the "dong dong" telling me that the microphone has been activated, but no words appear in my document when I speak out loud. Same problem with Notes.

Anyone else have this issue? MacBook Pro late 2021 M1 chip running OS12.5

Thanks for any troubleshooting tips. The usual steps taken through Systems Preferences/Keyboard/Dictation don't seem to work.