Convert To (Text/Heading) Collapses <li> into a single line

When a user highlights text in a list and selects the "convert to text" or "convert to heading" options, the list collapses into a single line.

Expected behavior in most text editors would retain each `` as a `
` or convert `

Here is a GIF replicating this on EditorJS homepage on Dec 16, 2022. Homepage says it is still using "version" : "2.26.0" but I'm seeing it on our local updated 2.26.4 version (1.8.0 on the list plugin) as well:

Reproduce the conversion from a selected list on the Editor.js homepage using the list plugin versions noted in the report. Start at the List Tool’s “convert to text” and “convert to heading” actions, then compare the resulting HTML with the expected per-item breaks or paragraph/heading elements. Done means converting selected list text no longer collapses all list-item content into one line.

Written by the indexing model from the issue text.