Please test the latest Telerik Reporting version, where rows higher than one physical page are split, instead of having the whole row pushed on the next page - Installing Telerik Reporting
. The List item and nested items KeepTogether must be set to false.
In case upgrading is not an option, the workaround is to switch back to SubReport items, where sub reports visualize data via TextBox items in their Detail section. Sub reports can be bound to the main report's data, if needed - How to bind Sub Report to Main Report's Data
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