Ah yes that will be because of a heuristic in the beautifier. Normally, the beautifier does not adjust code inside a block level tag, precisely because of the problem described here, except in the case of the block level tag being the only child of body, in which case it is assumed to be a wrapper tag. I suppose I can adjust the heuristic to also check the tag name and reject heading tags, since they are unlikely to be wrapper tags.
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