Selenium is not using the address
The controlled browser opens, but it leaves through the machine IP.
When Selenium ignores the address, the page opens through the server real IP. Confirm by opening the My IP page inside the controlled browser.
The three causes
The --proxy-server option never reached the browser, because it was passed in the wrong place in the capabilities. Or there is a proxy extension in the profile that undoes the option. Or Chrome received a username and password inside the option, which it does not accept, and discarded everything.
Authentication in controlled Chrome is done by authorizing the server IP, or with an extension that fills in the password. Never in the option itself.