The unformatted text also surprised me. For those that land here too…
I believe the explanation is: When browsing just the main page the post text is a summary without formatting (due to the theme maybe?). Clicking the “read more” button gives the actual post page where the text is formatted as expected.
This post also includes the issue: Quickstart confusing to an old-timer
To clarify other replies: At this point in the Quick Start there is only a local repository (the site exists only on the local machine), nor public directory (the site has not been published and the “Environment: development” server is “Serving pages from memory” on the local host).