The "Indents and Spacing" option in "Paragraph Styles" in photoshop doesn't work properly. It doesn't do anything. However you can force it to work if you change the Indents and Spacing FIRST, then change something else after (for example the font size). Even if you choose the exact same font size this forces it to work.
I have double checked overrides / character styles and the problem is the some on my colleagues computer. We're both using the latest version of CC.