It is possible to change whether a field (or comments) render with wiki markup or plain text. It looks to me like comments have been configured to render as text. The JavaScript code that inserts mentions is not aware that changing the renderer is possible -- It probably should insert the name directly instead of using Wiki markup for this case, but it isn't that clever.
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This solved it. Thanks Chris. I switched to the WIki Renderer. Surprising that's not default!
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