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The root of the problem is two things;

• <p> isn't permitted to have a number of things as it's children (EditorHtml::renderTagIndent and EditorHtml::renderTagHeading), it should use <div>
• \XF\Html\Renderer\BbCode doesn't correctly undo the editor injecting a indent per-line, resulting in indent's mixed into existing line content when it shouldn't be.