When I hit tab, the cursor merely tabs
over and the bullet or number remains in place. I have to right click and
press "increase indent" or "decrease indent" for whichever direction I
want.

I have checked "set left and first indent with tabs and backspaces" and the
tab key is still not responding.
Go to ToolsAutocorrect OptionsAutoformat as you type then check the Set
left and first indent with tabs and backspaces.

Can anyone help me with my bullet/numbered outline list problem?