I tried to reproduce the reported behavior with the Paragraph Styles
example of RadEditor, but unfortunately to no avail. Could you please test it and if you are able to reproduce the problem, then provide detailed step-by-step instructions how to reproduce the problem? If possible capture a video and send it to us via the attachment feature of the support ticketing system.
If you are unable to reproduce it then make sure that you are using the latest version of Telerik.Web.UI.dll (2009.1 402), where the FormatBlock tool is enhanced.
the Telerik team