Indeed the following is produced (passing test):
{noformat}
.#-----------------------------------------------------
.input|xhtml/1.0
.#-----------------------------------------------------
<ol>
<li><p>Hello</p></li>
<li><p>world</p>
<ol>
<li><p>Hello nested</p></li>
<li><p>world nested</p></li>
</ol>
</li>
</ol>
.#-----------------------------------------------------
.expect|event/1.0
.#-----------------------------------------------------
beginDocument
beginList [NUMBERED]
beginListItem
beginGroup
beginParagraph
onWord [Hello]
endParagraph
endGroup
endListItem
beginListItem
beginGroup
beginParagraph
onWord [world]
endParagraph
beginList [NUMBERED]
beginListItem
endListItem
endList [NUMBERED]
beginParagraph
onWord [Hello]
onSpace
onWord [nested]
endParagraph
beginList [NUMBERED]
beginListItem
endListItem
endList [NUMBERED]
beginParagraph
onWord [world]
onSpace
onWord [nested]
endParagraph
endGroup
endListItem
endList [NUMBERED]
endDocument
.#-----------------------------------------------------
.expect|xhtml/1.0
.#-----------------------------------------------------
<ol><li><div><p>Hello</p></div></li><li><div><p>world</p><ol><li></li></ol><p>Hello nested</p><ol><li></li></ol><p>world nested</p></div></li></ol>
{noformat}
Notice the extra Groups/DIVs.
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