Set line spacing for style when applied to a list?

I have a style named ‘block quote’ which is indented. It is essentially (I think) the same as my paragraphy style but with wider margins.

Line spacing is set to 1.2, same as for my paragraphs. It works great unless I apply it to a list. Then, for some reason I see what looks like an empty line between list items.

This doesn’t happen if I apply my ‘paragraph’ style to a list. I can’t find a way to fix this. Can you help?