Embedded paragraph merged into the ul above after editing

Problem/Motivation

After editing an embedded paragraph that is below an unordered list, the embedded paragraph becomes merged into the list, when it should be separate. This causes unexpected behaviour on our frontend website and incorrect formatting.

Steps to reproduce

• Create an unordered list in the editor and add a couple of list items, such as 'test', 'test 2'
• Press return to exit the list
• Insert a slice as normal and save
• The slice is not part of the list as expected
• Edit the slice and save
• The slice is now part of the unordered list which is not expected

Proposed resolution

I am unsure if this is an issue with CK Editor itself or the paragraphs entity embed module so I thought I would raise it here for further investigation. I have looked in the issues for CK Editor and have found a similar issue regarding lists being merged, but this seems to have been resolved in 2023. https://github.com/ckeditor/ckeditor5/issues/12738

Remaining tasks

User interface changes

API changes

Data model changes