Screenplay - "Script formats are static"

Okay, this one I don’t think I’ll figure out on my own. I am not way down the road on this script, so fixing formats after editing a script format won’t be the end of my world. But, the manual says on page 132 that if you work in the script mode and make changes via Script Settings that the "older script format will no longer be recognised as anything other than “General Text”… . But mine are recognized as Scene Heading. Bug? Anomaly? user confusion?

To clarify, all the Action is identified as Scene Heading, and Scene Headings are identified as General Text. Is that how it should work? (But Character and Dialogue seem unaffected.)
Thanks !!

Interesting enough, I have noticed that Scene Heading being applied to other elements after I have changed the script format (blast you, wrong character name!), it only seemed to affect the first Action paragraph.