Here is what I’m doing:
Use the type tool and enter some text
Select text and size it
Set paragraph spacing
I expect that changing paragraph spacing would change the paragraph spacing but it does nothing. I changed fonts but just got the same result. Scratching my head.
You definitely have multiple paragraphs/hard returns? And you’re not adjusting line height instead?
AS you can see Paragraph spacing is 0 but there is a tone of space in between lines. I can increase the space but cannot make it smaller than this for any font.
Restarted and it works now.
In that screenshot, you had your line height at 35.