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John,

This must be so incredibly easy that only I have problems, I see no
guidance in the help page.

Try this wiki page, as far as I know the home page Description editor works the same as the message (New Topic or Reply) editor:
/g/GroupManagersForum/wiki/Message-composition-tips-and-tricks

I am trying to get sections of headers followed by bullet points, then
the same in the next section, ... but I do it by copying to Word then
copying back.

Copying from Word may be part of your problem. Word's formatting structures are very different, and may not copy well into Groups.io's HTML editors.

Word shows soft carriage returns between the lines, which I change to
hard carriage returns before copying back.

Shift+Enter inserts a paragraph break (similar to a hard return); Enter inserts a line break (similar to a soft return). For some formatting (especially blockquote and indent) the distinction is important. For lists though line break seems to work.

I cannot apply bullet points to the selected text only.

To get bullets I was able to type:

Intro[Enter]Item 1[Enter]Item 2[Enter]Next[Enter]

I then moved the cursor back up to Item 1 and selected it and Item 2, then clicked the Bullet List tool. The bullet formatting applies to the selected lines of text, and it is easy to accidentally include preceding or following lines in the selection.

The cursor at the beginning of a line includes that line, so you may need to use the back-arrow key to step back to the end of the prior line if you selected the lines by clicking at the start of Item 1 then using Shift+DownArrow twice.

Shal


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