Yes, it is very odd.  I have several clients running premium SKUs and have never run into this before.  This is the first workspace I have spun up since the June update, so not sure if that is causation or coincidence.  I did reach out to my AE for another account and he confirmed that it seems like a misconfiguration.  Also, because this tenant is new, there is no AE assigned so he can't directly escalate to the tech team.
Usually, I'd kill the workspace and fire up a new one, but the index has been running the initial sync for the past 3 days and do not want to lose that work or repay for the embedding (well, not coming out of my pocket, but still)

Thanks
Scott