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This issue is addressed with a new option "Honor Text Indents in addition to Text Wrap" in Preferences > Composition dialog. This option is ON for new docs created in ID2023 and needs to be turned ON for docs created in older versions of InDesign when opened in ID2023.
Adobe InDesign team
An error occurred while saving the commentAnonymous commented
Just checking in... Is there a fix for this yet? It's driving me bonkers.