My apologies,
It appears to only happen on my worlds which were made before the chat update. If I create a new world, it does not occur.
However, If I copy the world it still seems to happen. Ive spent around a year on the world so i dont exactly want to delete it, are you aware of any other way I can copy the world?
Dont you think I wouldve tried that? it didnt work.
I ended up fixing the issue recently by purchasing a realm, uploading the world to it and downloading it back off of it and my chat is now as normal.
It's still rediculous that I have to do that though, I see it as minecraft basically making me pay twice for their game.