WD: Cannot Create Hanging Indent in Multilevel Numbered List

CAUSE

Word behaves as if you applied regular instead of hanging indent formatting to a paragraph in a multilevel numbered list if you also applied Skip Numbering formatting to the paragraph. (To apply Skip Numbering formatting to a numbered list, click the right mouse button on the paragraph and then, from the shortcut menu that appears, choose Skip Numbering.)

For example, in the multilevel numbered list below, if you choose Skip Numbering for the "Note" paragraph under section I, then apply 1-inch hanging indent paragraph formatting, Word incorrectly displays and prints the paragraph as if you formatted it for a 1-inch left indent. This happens even though the ruler and the Format Paragraph dialog box correctly display the hanging indent formatting.

I.  Fruits
     A.  Apples
     B.  Oranges
     C.  Pears
     Note: This list does not contain any tropical fruits such as guavas,
     mangos, pineapples, or papayas.

II. Vegetables
     A.  Carrots
     B.  Lettuce
     C.  Rutabagas
				

By contrast, if you interrupt the numbering by choosing Stop Numbering from the shortcut menu for lists, Word correctly displays and prints any hanging indent formatting you apply to the paragraph.