On macOS 27, System Settings >> Appearance >> Auto switches the Mac between Light and Dark according to the Night Shift schedule.
Apple specifically states that when Night Shift is on, the appearance is Dark. (Apple Support)
Check that Appearance >> Auto is selected, then go to System Settings >> Displays >> Night Shift >> Schedule.
If you select Sunset to Sunrise, make sure Location Services is enabled under System Settings >> Privacy & Security >> Location Services, because macOS uses your location to determine sunset and sunrise. (Apple Support)
To use this option, you must turn on Location Services.
In your case, the important detail is that Custom 22:00–07:00 works, whereas Sunset to Sunrise does not.
If Appearance remains Light when the Night Shift schedule indicates that Night Shift should be on, the behaviour differs from what Apple documents for Auto Appearance.
At that point, the appropriate next step is to report the specific behaviour to Apple, including that the Custom 22:00–07:00 schedule works but Sunset to Sunrise does not.
Product Feedback - and make it known to Apple regarding this ongoing issue
You can also check System Settings >> General >> Software Update for a newer macOS 27 release.
Apple's relevant documentation is Use Night Shift on your Mac and Personalize your MacBook Pro.
One important clarification: Apple's documentation establishes what should happen, but it does not identify the cause of your particular failure. So I would not call this a confirmed macOS 27 bug unless Apple subsequently acknowledges it.