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I apologize for the delay! I have recently tested this and the issue was still appearing when I added the > and < to my Steam name back. As such for now I will continue using the profile name without these punctuation marks.
So in short the issue remains, but the workaround still works.

Salutations!

I have figured out what the problem was - certain punctuation marks at the start of a Steam name (such as the > in >DINKY<Barbar) cause this issue. I have changed my steam name to no longer have this punctuation character at the start, and the chat worked normally. After leaving the game and changing the name back, the issue returned. As such I can confirm that this is indeed how this happens, and how to avoid it. Those with clan or other group tag incorporated into their names should be advised that some punctuation characters (I did not test them all) will cause issues with the chat displaying.

Thank you!