Slicer(new) with 'Select All' behaving weird (multiselect)

Hi All, I am quite new to the space and I came across this issue with the Slicer(new). Below are the replication steps.

1. Add a Slicer(new) to PBI report with 'Select All' option enabled. Publish to a workspace. 
2. Open the report in PBI workspace. 'Select All' is selected by default. 

3. Click on 'Deselect all', and move the mouse, the text on the button changes to one of the options in the slicer instead of 'Select All'. 

In PBI Desktop it is working fine (Feb 2025 Version). I dont see the Slicer(new) in the service when I edit the report.

Any suggestions to have this resolved would be appreciated.