I can reproduce this on Android 14 and Chrome 130.0.6723.58, although it's not consistent. I was able to make it do this a few times, but then it started working as expected. I added/deleted the bookmark a few times afterwards, and edited the bookmark labels and it was fine.
Might be worth noting that, for me, when it did do this, it was during an edit. When I added the bookmark it worked fine.