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I believe this is intentional, and part of the CSS-Font-Display spec.

The previous behavior (Flash of Invisible Text) was considered an anti-pattern, as it prevented text from being read on slower connections.

The new spec allows CSS to specify the behavior.

At first glance, that document states that Chrome (and the other browsers) have a 3 second timeout before showing the fallback font.

For me, I'm seeing a fallback in less than 100ms before flickering to my web font. So the timeout doesn't seem to be working right now maybe?