This happens when I simply press enter to add the second arg.

not able to replicate

Same here. I'm unable to replicate this. What is your current setup? I'm using Emacs 28.2 with CIDER 1.6.0-snapshot

I'm using Emacs 28.1 with cider 1.5.0-snapshot. This is #spacemacs distribution. Oddly enough, it seems to happen for namespaced symbols but not simple symbols (in this case)

But the aformentioned problem still happens too

Are you using clojure-lsp? That may be interfering with indentation. Just to see if it is, what happens to indentation when you disconnect from the LSP server?

No. But I've just updated to Emacs 28.2 and also to latest spacemacs/develop and the problem went away!

That's good to hear. 🙂