Lutron dimmer switch entity state not responding to physical presses

I have a Lutron PD-6WCL smart dimmer switch. It works fine if I use Lutron app or HA to turn it on/off etc. However, if I press the physical buttons on the switch (on/off/brighter/dimmer), the HA light entity is not registering any state changes. Which plays havoc with automations and scenes, as you can imagine.

I also have a DVRF-6L smart dimmer switch which works perfectly in all regards (including physical presses).

Any idea what might be happening here?