Description
What version of Tailwind CSS are you using?
2.0.4
What build tool (or framework if it abstracts the build tool) are you using?
play.tailwindcss.com
What version of Node.js are you using?
play.tailwindcss.com
What browser are you using?
Chrome90 and firefox 88
What operating system are you using?
mac catalina
Reproduction repository
https://play.tailwindcss.com/lDSLiFbftS
Describe your issue
Repo not needed, your online "play.tailwindcss.com" illustrates bug perfectly as does your own doc page (see below)
list-inside
does NOT handle "hanging indent" at all; list-outside
is OK.
Reproduce bug example #1 - TW playground:
https://play.tailwindcss.com/lDSLiFbftS
Reproduce bug example #2 - simply view your doc page
Your "samples" for list style position fail to include any samples "long enough to wrap" which is probably how this bug escaped detection so long.
But if you view your doc page https://tailwindcss.com/docs/list-style-position with the browser window narrow enough for the sample text to wrap, you can reproduce the bug there: