Initialization not working

I am using a home grown style which is working fine. However the Author initialization is not working. The relevant style lines are:

<names variable="author" delimiter=" ">
<name and="text" et-al-min="3" et-al-use-first="1" name-as-sort-order="first" sort-separator=" " initialize-with="."/>
</names>

I thought that if the author is "Smith, James" then we would get Smith J. but instead I get Smith James when using the Zotero style preview. This has nothing to do with disambiguation as it makes no difference if this is the only cite in the document (or chosen for the preview)

Can anyone see what I am doing wrong?

Thanks
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