Library New Menu with Odd Behavior

Greetings,

Saw some very odd behavior with our tenant today and I can't explain it. On the library (attached pictured) the New menu has a Word document template associated with it and it has been working, without issue. Today one of our users clicked the New menu and got this? Other users experienced their menus being completely removed, then come back, etc.

At one point today, I saw the old icon with the arrow indicating a file is checked out versus the new red circle.

Any thoughts?