I apologize for posting this twice, my first post was closed, I think incorrectly. I do believe this is a bug and not an unsupported feature, because callouts in list items are rendered correctly in reading mode but not in live edit mode, which means the two modes have substantially different behavior here.
Callout syntax used in a list item, whether on the first line or indented further lines, doesn’t render as a callout in live edit mode, but does in reading mode.
In the example below, in live edit mode the first callout renders as a code block, and the second renders with both the > visible and as though one had written an incomplete markdown link with no address. In reading mode both render correctly as callouts, as expected in their list items.
- title
>[!first callout]
- >[!second callout]
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