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In this video tutorial, the speaker emphasizes the importance of formatting paragraphs in Word 2021. A paragraph is defined as any section of text separated by the Enter key. The presenter notes that the document in question, copied from Wikipedia, may not have properly placed paragraphs. To illustrate, they demonstrate how to create a new paragraph by placing the cursor after a specific word and pressing Enter. Additionally, the speaker mentions that the title in the document is also counted as a paragraph, highlighting that paragraph formatting is a key aspect of document organization in Word.