That's currently a technical limitation. It will show both ways when a feature grants a specific spell, but can't yet be set up like that when the user chooses the spell. You can manually click a spell slot to mark it as used, though.
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I have magic initiate Wizard and Cleric on a character. I am able to Use the Level 1 Spells once.
I do NOT see an option to be able to cast the Magic Initiate Spell with a Spell Slot.
That's currently a technical limitation. It will show both ways when a feature grants a specific spell, but can't yet be set up like that when the user chooses the spell. You can manually click a spell slot to mark it as used, though.
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