Shift-Tab in a Notes list doesn’t outdent

On my 27” iMac (late 2013 model) 16gb ram tons of free disk space, using the Mac keyboard and running catslinas latest update:

In a notes note list the tab key indents but shift tab doesn’t outdent. when I use shift-tab in this situation the list doesn’t outdent and a smallish colored dialog box comes up. It is a rounded corner blue rectangle with an x inside a circle (both blue but different shades.

When I try this on pages the same thing happens, but at least in pages there are little blue arrows representing tabs and deleting one undoes the indent.

Perhaps I somehow disabled the ****-tab combo. If so it wasn’t on purpose. . .

Any ideas on how to fix this?

Thanks,

Chuck