Tried various Urdu fonts in InDesign and only one seemed to work fine (Jameel Noori Nastaleeq). On others attempted, the glyphs were all over the place and it looked like some baseline shift might be required on some characters. In others something called 'missing glyph protection' kicked in and all the characters looked like they were piled on top of each other.

The same fonts worked fine in MS Word (365) so I prepared two PDF files showing the same text in 5 different URDU fonts - one prepared from Word and the other from InDesign to illustrate the difference.

I already had the MENA version of InDesign and with the help of Adobe Support I was able to install the Urdu Hunspell dictionary files. However, neither of these things helped. Adobe Support informed me it was a bug that should be reported.

Hopefully it might be resolved soon?