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This video tutorial explains how to properly unwrap text and objects in a document, such as text boxes or images, to avoid formatting issues. When moving objects, strange movements can occur if they are improperly wrapped. To resolve this, the presenter demonstrates how to create two text boxes and highlights the importance of adjusting their settings. To fix formatting issues, hold the Ctrl key while ensuring the cursor shows four arrows, then go to "Wrap Text" and set it to "None." This adjustment should be applied to any text box or image to maintain proper layout and movement.