I’ve done a search through the forum but cannot find the answer to this question. When I ask Scrivener to compile a draft, it exports okay, but there are no headings or subheadings, no paragraph indents, and so on.
Should I be using the Novel template specifically? I have just done single sections for each chapter, in a blank template.
Or can I tweak the output to compile a correct manuscript format for publishers?
Nah, it’s perfectly fine to do what you wish; there are very few shoulds with this software. The templates are examples of how you can put a project together and integrate compile settings with the structure of the project.
To learn how this all works, I suggest creating a temporary novel template project and having a look at (a) the help file, (b) the example structure in the draft, or manuscript as it will be renamed in that template, folder, and © the Formatting pane in the compiler. It is the relationship between B and C that produce a final book structure and handle such details as paragraph formatting.
If it’s difficult to see what is going on just looking at the end result, you’ll find a whole bunch of explanation in §25.10 (pg. 352) of the Scrivener 2.3 user manual.
Ultimately you’ll want to set up your Formatting pane so that it generates titles for the types of items you have created as chapters in your binder.