Hi, I just tried editing the .lyx file manually changing
\begin_inset CharStyle command status inlined \begin_layout Itemize command \end_layout \end_inset to \begin_inset CharStyle command status inlined \begin_layout Standard command \end_layout \end_inset and that fixed everything. The text is now displayed properly (no more hyphen to symbolize nested itemizing) and the LaTeX code is also correct. That means things go wrong when character styles are *added* to an itemize structure. Regards, Markus