Indented bullets not working by default

[daz10000]

I have overall had a wonderful experience setting up a website with eleventy-duo. I ran into one strange problem (it looks like a bug). Second level bullets aren't respected in markdown. i.e.

* testing
* testing
  * one
  * two
* three

Renders everything at a single level. Maybe something is stripping out the leading whitespace? The default 11ty package works as expected. I've tried every possible indentation convention for markdown and read the docs... any clues?