Convert Text to Default Formatting. Different for Non-Manuscript Documents?

Today I noticed that Convert Text to Default Formatting doesn’t do what I’d expect in a document that’s not within the manuscript. Specifically, the paragraph spacing was not changed to the default.

Is that why, or is there a different reason it didn’t convert?

Yeah, I’m pretty confused here. The stuff in this document, which was converted from Project Notes in a V2 project, is formatted in a weird way. And when I convert to default formatting, it changes the line spacing to 1.1. Also, I can’t change the .25 inch indent, which seems to be ignored anyway.

More experimenting showed that the default style had changed. I’m sure that I didn’t change it. Once I changed it back, and also recovered from a crash, I was able to modify the indents in the dialog above.