Pen Tool Only Creating Anchor Points - Only In Certain Documents

Hey there!

I've been having a randomly reoccuring issue with my pen tool where it will only drop down anchor points instead of paths. I have checked that I have rubber band on, and also this issue will start in one AI file but not affect others. I have tried restarting Illustrator, restarting my computer, saving a copy of the document, etc. Sometimes the pen tool will fix itself, sometimes not. I would love some help on this if anyone has encountered it before! Screen recording attached to better explain my issue.

Thanks!