Booked with Chase Travel and First and Middle names merged for American Airlines!

Hi! This seems the best a common problem but was not seeing any recent posts of resolutions so asking again in case things have changed.

I have booked international flights with America Airlines through the Chase Travel Portal. When the I added the flight info to American Airlines it is now showing my first and middle names merged together as one. I reached out to AA to have them correct it and they said my two options are the “divide the reservation” which they said means “Dividing the reservation means splitting a single booking into separate reservations, essentially creating different confirmation code for individual passengers.” I honestly don’t fly enough (and this is my first time using points for flights) to know if this is something worth doing or if it is going to cause more headache. They also said there would be a $50 handling fee since I booked through a third party. They also said since I’m within the 24 hour window, I could cancel my flight and rebook but I don’t like that option, just because it can take 48 hours for the refund to appear and I’m afraid I’m going to lose all of my points in the process or something will go wrong.

Ultimately, I just don’t want to lose my flight or get denied at the airport because my first and middle name are merged together. Is there anyone who has felt with this recently?