Paragraph Ckeditor 5 link not working

I can confirm the issue - using D9 / CKEditor 5 / Paragraphs 8.x-1.15

I'm noticing that the pop-up for the link is coming in behind the toolbox for the paragraph.

I found an answer here https://www.drupal.org/project/drupal/issues/3351603 🐛 CKEditor 5 link broken in Dialog if another CKEditor exists Needs work

Hello,
I would like to kindly ask a question regarding Drupal10 full html settings for text CKEditor5.
Until Drupal 9 I was using full html for texts on webpages if I wanted to offer hyperlink. Generally there was no issue with the text. Hyperlink offered to access another page, please see example:
Drupal 9 firefox
Trying to use full html in Drupal 10 causes issues. Any hyperlink in the full html text breaks formatting in way it creates paragraphs around text with hyperlinks and breaks all text round.
It seems any html used in the text starts to create breaks, and formats text into columns based on inserted html. There is no difference in display using Firefox, edge, chrome.
My question is, what options to apply for CKEditor5 so I get the same results as in Drupal9 sample above.
If any html breaks text formatting as shown then CKEditor5 is useless.
I have tried all text formats, but result is the same, can you advice please?
Currently I use default settings in CKEditor5.
Can you please advise? What settings to apply so get the same output as in Drupal9?
Also tried other options for text and result was the same.
I have compared setting of CKEditor in D9 and nothing has changed
Is there something new in D10 I am overlooking?
Thank you Libor