§k is not creating obfuscated text in chat on Mutant World

[1.12]
Partner Rank:
3
Partner Team Reporting:
Everbloom Studios

Verification builds:
1.12.0.27

Summary:
§k should create obfuscated text and does so in command blocks and chat before you send a message. Once the message actually appears in chat the text is not obfuscated.

Impact: Text that confuses the player

Repro Steps:
Start a fresh world in creative and open up chat
Type in §k
Type in any text
Type in §k
Hit enter and you will see the text in chat is not obfuscated

Observed Results:
Unobfuscated text
On our Map Mutant world when a player is selecting the game difficulty the unobfuscated text can be seen.

Expected Results:
Obfuscated text

Screenshots/Videos attached:
Yes

Regression Builds:
1.11.0.4

Notes: