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In this segment, the tutorial focuses on formatting paragraphs in Word 2021. It begins by clarifying that a paragraph, in the context of Word, is defined as any text following an Enter key press. The presenter mentions that the document being referenced may not have paragraphs correctly formatted. To illustrate, they demonstrate adding a new paragraph after a specific word by placing the cursor and pressing Enter. Additionally, it is noted that even titles are treated as paragraphs in Word. The discussion highlights the flexibility in managing paragraph formatting and organization within the document.