Is your feature request related to a problem? Please describe.
Styled Chat uses the Simplified Text Format from Placeholder API, which appears to not work with Chat Patches.

Without Chat Patches:

With Chat Patches:

The message itself gets across fine, but somewhere the formatting gets lost.
Describe the solution you'd like
Basically just the formatting to be compatible. I have no idea what that would take or how big of an undertaking that would be though.

Describe alternatives you've considered
I really like all of the features that Chat Patches adds, so I've tried to find some alternatives with little to no avail. More Chat History and Compact Chat were the only ones that are up to date, with the rest either not ready for 1.21.5 or seemingly not developed anymore.

There are some similar mods that don't have the issue mentioned but either don't quite function in a way I'm looking for, such as Beautified Chat or Chat Plus.

Additional context
I suppose I don't actually know whether or not it's Placeholder API or just Stylized Chat itself, but I'm guessing it's the former.

thanks for the report, i think i'd consider this a bug bc these should work together out of the box. could you also send a mclo.gs log link as well?

Sure thing! I made two instances just in case it's actually not related to chat patches for whatever reason. One is the modpack I actively use, the other only consists of the bare essentials (Fabric API, Chat Patches, Mod Menu, YACL).

Modpack Logs:
latest.log
Chatlog.json

Chat Patches only:
latest.log
Chatlog.json

If you need the server log since Styled Chat is a server-side mod, I can give that too, although it's probably quite large since the server hasn't been restarted in a while.

do you have the server side config for stylized chat available?