Odd. There is a bug, new in the 22.0.0 release, that, for me at least, is fixed in Beta 22.1.1 Build 7. This only occurs when you have the "transcribe in to out" selected and have an out point only. You can see in your "before" image that the timecodes start in the 8 hour range.
I am also now at 22.1.1 Build 21. I just tested and the timecodes are ok, and captions are created correctly. I only tested using the local transcode option, but that also showed the error in Beta prior to Build 7.
Are you sure you are at Build 21? Your screenshot is from the Beta version.
See this post and the thread linked there:
https://community.adobe.com/t5/premiere-pro-beta-discussions/transcribe-in-to-out-creates-bad-timecodes/td-p/12482627
Edit: Sorry; I misread. I will update to Build 33 and retest. To test, just look at your transcribe settings and be sure in to out and not selected.
Stan