I found many questions similar to chat formatting issues but unfortunately none of them addresses my issue related to chat formatting and I am making it clear that I am not talking about multiline messages.
So personally I observed it mostly for formatting of code and italics, they just don't work always. What I have seen is for italics: sometimes *text* don't work but _text_ work in a single line message and vice-versa and same for code formatting: backticks don't work but
Ctrl+k works always. I discussed this issue in Chat feedback too, but unfortunately, no solution came up therefore here I am providing some chat links realted to these issues:-
At first I thought, It is not formatting just for me but I had asked my fellow users in chat room, they have experienced it too.
PS: In no way I am saying that chat formatting just never works but It is also true that It don't work always (Only SE Devs can tell why)