Hello rick adams,
Unfortunately, this is a small bug in the current version of the RichTextBox. The first time you hit enter, you split the current paragraph in two and move the caret to the beginning of the second paragraph. If you place the caret at the end of the first paragraph and hit enter again, you will create a third paragraph in between and your settings will be applied to it.
We will try to make the way it works more intuitive in the near future.
the Telerik team
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