I missed that you were using 2025 R1. I have tested there and see the same as before.
Please go to Help | Support Bundle and grab all of that text and email it to me along with your FmtPlus.opt file from 2025 R1 and I'll try with your same settings. michael.staszewski@quest.com.
Thanks for the email. I can reproduce the issue with your settings. The reason is the default list setting. You have it set to "Tabular." The default value, "Stacked on Overflow or More than..." works. You can hover over the control and read the hint for more information about each setting. With that setting set to Tabular, I can reproduce what you see and I see consistent behavior in older versions as well with this option set. This may be expected behavior. I'll reach out to the Formatter developer for clarification.