[whpalmer4]

Sorry, my answer doesn't apply for all cases, but it did for my test case!

If you don't have any nested items under the prospective parent, it doesn't make the new one nested. However, all is not lost; after you edit the name, just press cmd-] or do Edit->Outlining->Indent to make it be a nested item. Or drag and drop it on the parent, as I suggested.