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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 commentDonna commented
I thought I was going mad. I have indented text which was wrapping beautifully around call-out text boxes. Now I'm having to redo the entire document as the indent is treating the text box as the left margin. Not happy at all, and it's hardly something I can recoup time/costs for from my client!!!