The way the Author (Year) option should work, is to enter a ref, then edit citation to use subsequent Author (year) settings in your attached image. However, you can’t do that with two refs. You could enter one, change it, include a space and enter the second one (and edit citation) to get what you are showing.
However, I have never seen one use the Author (Year) in the manner you are showing, when one uses grouped references?
And, you shouldn’t have changed the first option to be Author (year) - as it doesn’t work that way, as you illustrated.