It is as designed.
When you click on the "A" symbol, which is above the Paragraph symbol, both at the left end of Control Bar – the layout will change. And when you click the Paragraph symbol again – it will change back. There are 2 layouts.
You are awesome. Thanks Tomek!
Tomek -- THANK YOU! This has been driving me crazy for the past few days and I couldn't figure it out. Thanks again.