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Converting straight quotes into smart ones will stop if there’s a list in the selected text. Take this pattern, for example:

Some text.
List.
More text.

If you select all and then go to Edit>Convert>Plain Quotes to Smart Quotes, all of the plain quotes in Some text are converted while those in List and More text are not.
I hope my explanation is not confusing.

Greetings, Henry.

Groucho,

Thank you for pointing this out. I have confirmed the problem and we'll work on a solution.

Thank you, Mark.