Here is a patch with the fix.

-- 
Thanks,
Vikas

On Sat, Jan 8, 2022 at 9:22 PM Vikas Kumar <kr.vikas@gmail.com> wrote:

> Hello,
>
> When I use ':results value list' in an emacs-lisp source block it looks
> like Babel does
> not indent list items correctly when one of the items is a multi-line text.
>
> To reproduce evaluate the following code block:
>
> #+begin_src emacs-lisp :results value list
>   '("Foo1\nBar1" "Foo2\n\nBar2")
> #+end_src
>
>
> It outputs:
>
> #+RESULTS:
> - Foo1
> Bar1
> - Foo2
>
>
> Bar2
>
>
> Expected output:
>
> #+RESULTS:
> - Foo1
>   Bar1
> - Foo2
>
>
>   Bar2
>
>
> Since the second line of the first item is out of indentation, this makes
> the output list actually
> finish after the first line of the first item. Re-evaluating the block
> then only removes the first line
> of the previous output.
>
> My Emacs and Org mode version:
> Emacs  : GNU Emacs 27.2 (build 1, x86_64-apple-darwin20.6.0, Carbon
> Version 164 AppKit 2022.6)
>  of 2021-11-16
> Package: Org mode version 9.4.4 (release_9.4.4 @
> /Applications/Emacs.app/Contents/Resources/lisp/org/)
>
> --
> Thanks,
> VIkas
>