1 Day Service Spanning over 2 Days

Hello, my company has a full day service that we use our bookings page for. Over the past few days, the bookings have gone from 'all day' to spanning over 2 days. For example, if someone books on 12/13/23, their booking will be for 12/13/23 @12am to 12/14/23 @12am. I noticed that the 'all day' option for a service has gone away, so we have the scheduling as '1 day'. Is anyone else having this issue?
Here is what the booking is supposed to look like (and what it looked like when people would book a week ago):

Here is what it looks like now:

Here is our scheduling policy (maybe there is an issue in there?):