Bullet alignment when using wrap text

In case it's still helpful to someone. I used to have the same issue in the "Before" screenshot below. Notice the unsightly gap and how the second line is not aligning in the bullet item.

Then I applied a combination of suggestions in this thread and the results are in the "After" screenshot below.

To get this result, I inserted an Em Space at the beginning of the first line of the bullet (as suggested). Then, in the second line, I inserted an "Indent to Here" character (using the tabs rulers window (Cmd/Ctrl + Shift + T), I had to manually adjust the alignment of the second line to match the first line indent). Finally, I created a paragraph style to use whenever a bullet falls around a wrap-around object. Try it and see if it works for you.

The easiest way is to use INDENT TO HERE in Special Characters.

Replace your TAB by 2 spaces and the special characters «Indent To Here.»

You've encountered a limitation of bulleted lists in InDesign when using a text wrap. I just ran into the exact same issue this past week on a project. The problem I believe is that in a standard bulleted list, it relies on a tab (as shown in the Text After field in your screen shot. When text wraps around an objects, those tabs are not updating to reflect the new position of the text.

To fix it, replace the ^t in the Text After field to an Em or En space by clicking on the arrow to the right of the Text After field and choosing Em or En space. This will replace the contents of the field with either ^m or ^>. You could even just type a single or double space to customize the spacing value if desired. Either way, this should produce a much more desirable result than what you currently have. You may want to create an additional paragraph style to use when you need to wrap bulleted items around an object.