Is this paginated post element on a layout applied to your homepage? How have you setup your homepage? Can I see a link to what you’ve setup?
From your docs:
It’s also important to note that the Layout Builder can be used to create a homepage like you see in the different theme demos. There are two ways to accomplish this:
Method 1: Create your custom layout, apply it to a static page, and then assign that page as your static frontpage under Settings > Reading > Frontpage Displays.
Method 2: Under Settings > Reading > Frontpage Displays, select “your latest posts.” Create your custom layout. Then, go to Appearance > Theme Options > Content > Homepage, and select your new custom layout as the content for the homepage. If you’re using an element in your custom layout that uses post pagination, make sure you use this method.
So, if you’re doing Method #1, pagination will not work. Could this be what you’re experiencing?