Okay, the first thing I did was select the sample text in your document and set my default formatting to that. I then went through the checklist, but I got the same result that I started with, regarding indent settings. I tried Block Quote initially, but found your first-line indent is nearly identical to its block left indent, so I used Heading 1 as well, which has no indent.
The only difference should be the font, in our tests, as I don’t have the one you use by default and ended up with Helvetica.
I started this with an old v2 project (that had been converted to v3 a while ago).
I then made the following changes:
stripped out all other documents
changed the account-wide default format to the font in the test document
applied the default format to all text
used Save As to save the file to a new name
I then applied the styles.
I would have thought that applying the default format, since it didn’t have any special indents or anything defined, would have overridden any tabs or indents defined in the text, so reverting back to No Style should have worked the same as you saw. Is that not the case?
The “No Style” setting will set text to the application or project default formatting, and as well, strip the style assignment from the cursor context. It’s a bit like the bulk document conversion tool with the option set to remove styles—the formatting result should be identical. Thus, if the basic order of things are:
Apply default formatting to document with default settings.
Change formatting of text in document (in any way).
Apply “No Style” to text.
Then the result should be the text looking identical after the first and third steps.
The only discrepancy I can see in there is that the sample project has an indent applied to the text, which I presume is the intended default formatting—so I don’t follow what you mean when you say the default format does not have any indents.