Bug: Outline new item retaining heading level of parent

One of the recent updates brought back some flaky operations in the way outlines work. Was working fine, but one of the last few updates broke it.

Create new outline item, make it level 2, enter, tab...should now be NORMAL item under the heading level but it's still level 2, having to grab the mouse, hover, select normal, and continue is awkward and, IMO, broken. This happened a while ago, got fixed, is broken again

Should be: if I make an outline item level 2, then new item at same level is also a 2, assume I'm setting up the different sections with heading all of the same level, but when I create a new item and indent, then it becomes normal because the assumption is that now I'm creating the content under that level