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Default Function not evaluating

A colleague showed me this strange problem today

He had a vlookup function which instead of returning the answer insisted on
showing itself as text in the cell

so

=vlookup(a1,c1:d4,2,0) would insist on showing as just that

when it was copied and pasted into the cell editor box in another cell it
would work fine

all the other functions were working so the show formulas instead of results
setting was not the problem

Any ideas?
Cheers
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