Yes, that updates the TOC. The problem is that I made the template for a company. I have been dealing with a secretary who doesn't understand anything about templates, and she will not accept a template that is not "perfect." She wants a template that requires no more action than entering text (which I've given her, until this problem). Having to update the TOC seems like an imperfection to her, and so she has complained. Unfortunately, I don't know how to fix it.
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