Mike,
It looks like your set the editor breakMode to UseBROnCarriageReturn.
So when you use the ENTER key while typing, the break tag <br> is used to force the browser to start a new line instead of a new paragraph or a new division.
All the contents you are editing are included in a whole paragraph.
When you use the indent/outdent functions, the whole content will move together. That's the drawback for using <br> tag.
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