I thought it was something like this at first but no. It suddenly happened around the update to 107 and happens for every site and container. Maybe a bug?
Ps: I'm on FreeBSD for which mozilla doesn't make a version so I'm using a community release. It's been working totally fine though for years with the exception of D
Hardware DRM which is just not supported on FreeBSD (and I agree with that)
Sounds like a bug, I'd try it in a fresh profile and see it still behaves that way for you. I just installed the extension a few minutes ago and it's translating manually when I click the button.