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ajlittoz did not directly answer the question, but provided me the information needed to fix my document.

I've concluded that either the document was corrupt or I hosed it badly with mis-use of Styles. To fix, I started from a fresh document and pasted all my text as Unformatted Text. I then imported (Load Styles...) from my template file and applied Text Body Indent to all text. I then went back and applied my "Heading n" styles as needed.

Note that you can select multiple Heading text entries at once, on OS X it is Command-<double or="" triple="">click on each entry to select as many as you want. Then use the Styles and Formatting sidebar to select the desired Heading style/level.

Again, I'd up-vote ajlittoz, but my karma is not sufficient yet.