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Here is a simple Template:Test:
<div>{{{1}}}</div>

If the parameter is an unordered list it expands to bad HTML:
{{test|This is an unordered list:
* foo
* bar
* baz}}

Note the mismatching opening and ending tags in the final HTML:
<div>This is an unordered list:
<ul><li> foo
</li><li> bar
</li><li> baz</div>
</li></ul>