Does not happen in 1.16.5. In the Create New World/More World Options... screen, clicking on "World Type: Debug Mode" changes the world type to Superflat, completely skipping Default. With the Alt key held down, clicking on "World Type: Debug Mode" changes the world to Default.
How to reproduce:
Click "Singleplayer".
Click "Create New World".
Click "More World Options...".
With any Alt key held down, click "World Type" until it displays "Debug Mode".
After having released the Alt key, click "World Type" once again.
Look at the world type displayed.
Expected result:
The world type would change to Default.
Observed result:
The world type changed to Superflat.
Additional notes:
This is also the case when scrolling the world type button.
This is not the case with the Shift key held down. The button actually changes to the Floating Islands (before 1.18)/Single Biome (after 1.18) world type.
Before the button is clicked, the narrator says that clicking on it will switch to "World Type: Default" even though it won't.
Can confirm.