AHA!
While poking around in the options to make sure I knew what I was talking about, I discovered the "toc" option (set to short). I set it to long, and everything is good.
Also discovered the "long" dashes option, and I'm in type-A heaven!!!
Thanks for all the suggestions, which led me to the correct answer.
(Also, a note to an admin - if you would be so kind as to change the topic title from "BookDesigner bug" to "BookDesigner quirk", I think that would be more appropriate.)
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