Dear Robert,
this problem is unfortunately related to the "new editor" in Confluence Cloud as indicated in our ticket: https://bitbucket.org/apurde/simple-cite-cloud/issues/9/simple-cite-inline-issue-in-the-new.
Atlassian is aware of the issue but did not yet solve it: https://jira.atlassian.com/browse/CONFCLOUD-66008
Currently you can only work around this issue by using a define-only cite prior to really using the cite in the text with a short cite. Alternatively you can define the cites on a dummy page and use the cite import function in your text.
Kind regards
Andreas
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