Strange capitalization behavior on iPad

When I start typing something using the virtual keyboard, the first word looks like it’s going to capitalize the first letter as expected, but the auto-correction pops up with all lower case. See screenshot. The shift button on the virtual keyboard lights up as it should. Either I have to stop typing and close off the auto-correction bubble, or I keep typing and the word changes to all lower case, and I have to retype it. It’s getting very annoying. It seems to have started doing this within the last week or so. I have Auto-Capitalization and Auto-Correction both turned on in the keyboard settings. Any idea why this is happening and how to stop it?