2.7 beta2, problem changing from preformatted to paragraph in editor

It appears that switching back from Preformatted text style to Paragraph does not work. I.e. when I finish entering Preformatted text, I hit enter to finish a paragraph and then go to styles menu and change to Paragraph style. Instead of changing to Paragraph, editor moves cursor one line upwards and stays with Preformatted. Any ideas how to fix this?
Alex.