This is "by design" in the sense that this is part of using the new /execute command syntax to make the execute command more similar to Java - see [New execute command support in Minecraft version 1.19.10 | Microsoft Docs|https://docs.microsoft.com/en-us/minecraft/creator/documents/commandsnewexecute]
MadHatter - sorry for the delay. I didn't see the GameTest attachment, can you try again?
Our docs could do a better job of documenting this, but there is a category of commands, like op or deop, that only are available to "humans" at the console and not available to command blocks.