Separate Spaces Does not Work

This behavior exists per display. When moving to another existing space, the same windows appear as if its mirroring within the particular display and space. I have a 2 Dell monitor setup with my Macbook Pro w/M1 as a 3rd monitor. I have it current setup is extended. I am able to add/subtract spaces. When I go into Mission Control and attempt to move a browser or any program to another space, a "won't allow" icon appears.

I am running Sonoma 14.1.1. Screenshot below shows 2 Spaces (Desktop 3 and 4) showing the same content. I toggled on and off the "Displays have separate spaces" in the settings, logged on/off, restarted and shutdown a few times but the bug still exists.