bug#26569: Parindent doesn't work according to description

[Saideep Bhosle]

Parindent (paragraph-indent-text-mode) doesn't work as described in help.
After starting a paragraph with spaces and adding a newline (return) after
the first line removes the spaces added at the beginning.
Also, cannot start a new paragraph with tab in Parindent.
M-q mushes all paragraphs not separated by blank lines together.
This happens in Emacs 24.5 and 25.1.1 (On Debian 9 and Windows).
I tried Emacs 22.3 on Windows and it doesn't have this problem.

Thanks,
Saideep