There does indeed seem to be a bug in the StoryRanges objects.

However, for the Demo1 code, there should be no need to change the logic or the test - the .LinkToPrevious value for the first Section is always false. You can verify that by inserting:
MsgBox "Section: " & Sctn.Index & vbTab & "Link To Previous: " & .LinkToPrevious
after:
With HdFt
If that's not processing correctly, we have yet another bug...