I checked and Application.EnableEvents was still set to True. I ran the sub you mentioned anyways just for kicks, but with the same results. Also confirmed the Worksheet_Change is firing without any issues either. Not sure why, but looks like this is normal Excel behavior.
I was able to work around the issue, though. by protecting the sheet programatically, I can set UserInterfaceOnly to True. Doing this allows the event to trigger as normal without any issues.
Hope this helps if anybody runs into the same issue!