Or is it just updating very very slow?
Only awarded inside beacons, same with placing blocks. Were you chiseling a build or just mother nature?
Mother Nature doesn’t approve of your chiseling!
I am at 930k Prestige and i think i hit a hard cap. I would Need some other big Project builders to chime in and report if they still get Prestige for chiselling.
Prestige (as opposed to XP as I think the other are referencing) is capped. There’s a percentage score that acts a modifier for prestige, but it’s capped at a certain percentage. If you were to build more un-chiselled blocks onto your build, you’d be able to gain additional prestige with further chiselling.
I thinks it there so that you don’t just chisel every block for Prestige.
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Yep, bonus from chiseling is capped at 25%. I think that means you can chisel up to 1/4 of the blocks in your build to increase prestige. Anything beyond that is just for aesthetics 
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The maximum bonus from chiseling blocks is 19%. I believe that is the % of blocks in your beacon that have been chiseled, though I haven’t counted blocks or anything like that.
On PC you can see all of the bonus modifiers to you beacon prestige by using the debug console.
The game adds together the base prestige value of all the blocks in your beacon then multiplies it by the total of all your bonuses giving you your final prestige value.
EDIT: Here is a picture showing all the bonuses:
