Nevermind, it was an issue on my side. For some reason when creating a DG space and then calling family_name it returns "P" and not "DG". Which is why it was interpolating on a continuous space…
import dolfinx
import mpi4py.MPI as MPI
mesh = dolfinx.mesh.create_unit_square(MPI.COMM_WORLD, 10, 10)
Q1 = dolfinx.fem.functionspace(mesh, ("DG", 1))
print(Q1.ufl_element().family_name) # returns P