Issues with Content types and Microsoft Word

I have a SPO document library with a content type.  When I go to NEW on the document library and select the content type, it opens up Word (within the desktop application) As soon as it loads up, I see the properties that has all my content type fields listed. 

The issue is a few of those properties have default value but they do not default with those values in the Word App.  On the flip side if i was to drag and drop a file within the same library and change the content type then all those default values populate.  It seems there is something wrong with the way the Word App retrieves the default values.  An important thing to note is that the default values in word fail when they are coming from the Term Store but if it is a Choice, or something else it will default fine.  My screenshot will show the default values in yellow that come from non-Term Store fields and the blue from Term Store fields.