Thank you! I really wish this setting was more visible, I spent 30 minutes trying to figure out how to adjust tab stops (thinking it must work like a word processor), I even looked at this preference tab but it never occurred to me this would be an override issue. That's probably because the idea that a file could override the tab and indentation settings in such a specific way never occurred to me.
I do wish there was more visibility on this setting. Specifically in "Views" > "Tabs & Sidebars" a checkbox like the "Word Wrap" setting gets would have saved me so much pain.