16 letters is ~75 bits of entopy (if they are randomly selected), not 65. The usual recommendation is 80, but it's not as bad as you say. I don't know how Keepass is doing its math, but 65 is wrong.
Obviously the estimate is wrong when the password will always have a fixed length and a randomized character set. But KeePass doesn’t know that “pass word pass word” is following set rule. Perhaps parent commenter ran the calculation on an example with a run or common word within it.
You’re right it’s 75 bits for the format used by Google here.
