Font in Notes App

What kind of account are you using for notes? I just tried this and found that I do get these options for iCloud but not Gmail. This may be one of the many Notes features that is only available for iCloud/On My Device notes.

I would have to agree with this. I know on my iPad Pro, if I'm using any notes other than iCloud I can't use the pencil and write notes either. I would say double check that you are using iCloud notes and that may bring those options back for you.

Double tap on the text you wish to change and tap the right arrow on the options that pop up to reveal this setting: