Dictation Interruption Issue on Mac When Using Keyboard

I'm experiencing an issue on my Mac (Apple M1 Max) where dictation stops when I press a keyboard button. Unlike my iPhone, I'm unable to seamlessly edit text using both the keyboard and mouse while dictating.

According to Apple's website, on a Mac with Apple silicon, typing text should not interrupt dictation. However, this feature doesn't seem to work as expected on my device.

Is anyone else facing a similar problem or aware of a solution? Your assistance would be greatly appreciated. Thank you!