Nostaw, many thanks for the report. I have just fixed this problem.

The list removal code had some special case handling for the unusual formatting situation of only the bullet being on one line and the remainder of the text on the next line, and that code got broken by accident. So, list removal should work correctly in the future. However, the original formatting of that list item is odd. The extra indent is caused by the horizontal tab being wrapped to the next line. That looks wrong. Maybe we should even put the start of the item text on the line with the bullet.