I set a style, with a name, select it as being for paragraph and set the font then the paragraph settings including indent (and hanging indent as another test).
The style appears in the list.
I type a paragraph and then select the style, having selected the paragraph first (I also tried simply ...

Version 7.3 trial as today on website.
Setting a selected paragraph format the normal way for a hanging indent works perfectly although I could not find where to set the Tab distance to match the 1st line outdent.

When setting a new style to the same it just does not work.

I have done this on many ...