I tried to recreate the issue in a custom content type but things worked as expected. After various combinations of the original page I could not get it to work.
So using the page content type (the one originally used) I tried recreating the page thinking maybe the original was "broken". Same problem occurred. So at this point layout works in custom content type but not in WordPress page type.
After some thinking it over, I realized has more control over the display of the custom content type, so I made a content template for page with a single field block to display the content. And now things work.
Still a hidden issue in that on a site with little more than WordPress, Kadence and Toolset, the layout works so there is something that is happening when using the default display of pages on the staging site which suggests a conflict with another plugin.