Formatting of tabs is broken when new line entered

Basically, this gif summarizes the problem. Tested in Obsidian Sandbox vault

Expected result is to keep the formatting as it is. But it gets broken as soon as the new line item is entered between 2 items.

Environment Win 11

Obsidian version: v1.0.3
Installer version: v0.14.6
Operating system: Windows 10 Pro N 10.0.22000
Login status: not logged in
Insider build toggle: off
Live preview: on
Legacy editor: off
Base theme: dark
Community theme: none
Snippets enabled: 0
Restricted mode: on


This is not a bug. That third line is correctly interpreted as a code block.