No your soffits should not be insulated and there is a chance that your insulation has been damaged by this.
Insulate roof or above ceiling in eaves.
Staple plastic or foam baffles to the roof sheathing near the eaves to keep the material away.
In finished attic rooms with or without dormer insulate 2a between the studs of knee walls 2b between the studs and rafters of exterior walls and roof 2c and ceilings with cold spaces above.
A warm loft is where you insulate immediately under the roof which means your loft space is warm as well.
The airflow from the soffits to the ridge vent keeps the roof cool and prevents ice dams and the material will block that flow.
To be truly effective insulated areas must be tied down to the roof itself at the eaves.
For the same reason insulation shouldn t touch the roof s underside.
You may not be able to see them clearly yourself but you can be sure that your hard earned hot air will.
This is the point where the roof meets the walls of the house and it s one place where small gaps and cracks are commonly found.
On a positive note congratulations on having 24 inch eaves.
2d extend insulation into joist space to reduce air flows.
Everywhere but climate zone 1 building codes require the installation of ceiling insulation rated at r 38 or r 49.
A cold loft is where you insulate immediately above the ceiling of the top storey so no.