When using live-preview, lists in quote blocks are not rendered properly. There is an open ticket for this at https://forum.obsidian.md/t/lists-in-quote-rendered-flat-in-live-preview-mode/30441
Use case or problem
When rendering quotes that have lists in them, the lists are not rendered with bullets, but are instead rendered raw.
Enable rendering lists in quote blocks
Current workaround (optional)
Disabling live preview works to render the blocks appropriately.
Related feature requests (optional)
Use this code
> list in quote block
> - test
> - test
> > - test
We can use callouts or admonitions to create lists inside (pseudo) quote blocks that will be properly rendered with live preview
But nevertheless, I agree with OP that the inability to create lists inside ordinary quote blocks is an issue, presents an actual problem in certain situations, and should be fixed whenever possible.