I had the exact same issue, and quite a few different online forums, had several ‘fixes’ posted that did not work.

I gave up and went back into curseforge, found the chisels and bits mod page. Then I went to versions, and installed an older version and it works fine. I’m assuming the creator for the mod is still working on a fix for the bugs in the most recent version, but have not released a fix, or an updated and working file. I installed version 1.3.137 simply because I didn’t want to go through all the recent ones finding one that worked. So I went a bit further back. I’m sure you can install a newer one than the one I did. If it doesn’t work, go to the version before that till you find one that does.

It should work just as good, but I can’t say for sure as this is also my first time using chisels and bits. But it should do in the mean time till the bug is fixed or the creator releases some sort of trouble shooting method.