Yeah, it DOES give new names to any manual formatting. It is a silly way of doing it IMHO. You get this humungous dropdown list of every single manual format change a user has done. Dumb and annoying.

That is why I remove, as much as possible, the ability to even make any manual formatting for our documents. They use styles, paragraph styles, character styles, list styles and table styles. All font, font size, bolds, underlines, and paragraph format menus and shortcut keys are disabled.