It is not a bug. The selection is Default Paragraph Style; you make modifications and then update the style to include the modifications that you made. That is expected behaviour.
.
Don’t use Microsoft behaviour as your guide to managing styles, it has very rudimentary ability to manage styles effectively. It has only basic support for styles in any event, demanding users apply a lot of direct formatting.
.
You could click in your text then double click Heading 3 to apply that style. Then make your modifications and update style.
.
That is also not the best way.
.
It is best to set the attributes in the appropriate style dialogue otherwise you risk introducing unexpected attributes and breaking inheritance for those. Note, if you do break inheritance you can reconnect those attributes to the parent style by clicking the button Reset to Parent, this will remove your customisations on that tab.
.
You must understand how Paragraph styles inherit. Make sure the Paragraph Styles pane is set to Hierarchical.
First, Default Paragraph Style should not be used in your document, it is there to set attributes that are inherited by its child styles. Generally, you would set only font and font size there.
The paragraph style that you should use for the main body of your work is Body Text (keyboard shortcut Ctrl+0); your document will revert to that after a heading. If you change Default Paragraph Style to use, say, Calibri font, then Body Text (and almost all other paragraph styles) will be set to use that font automatically.
The exceptions are the heading styles. There is a font change in the paragraph style Heading so that, also not used in the document, and it’s child styles Heading [n], Title, etc will use whatever font is set there.
You can set the font size in each heading style, or you could type in a percentage, e.g. 120% and that would be 120% of the size in Heading style.
.
You should look at the chapter on Styles in the Writer Guide, download from English documentation | LibreOffice Documentation - LibreOffice User Guides