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The tutorial emphasizes the importance of understanding paragraphs in Word 2021, defined as text sections separated by hitting the enter key. It notes that text copied from sources like Wikipedia may not have appropriate paragraph breaks. Users can adjust paragraph formatting by inserting breaks where needed, for example, after specific words. Additionally, the title in the document is considered a paragraph. The video suggests exploring various paragraph formatting options available in Word 2021 to enhance document layout and readability.
