Here's the video tutorial I promised showing exactly why Block Protect can mess up your pagination seemingly beyond repair:
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Notice that, to diagnose the problem, I turned on all of the Formatting Marks using the Show/Hide button. That enabled me to see the evidence of too much Block Protect: those little squares to the left of the text.
Once I highlighted all the text with CTRL-A, I could turn off all the Block Protect in Format, Paragraph in the Line and Page Breaks tab.