Mac Endnote problem reformatting unformatted references

So we have this odd issue with endnote on Mac High Sierrea using Word from Office 365. 

When you insert references, everything’s fine. Then when you unformat references, and later on try to reformat them, it does not work. It instead recognizes all the unformatted references as a block of regular text like a note instead of endnote references. 

Any suggestions?