The only Markdown support I’m seeing is for automatic list, beginning a list item with - then pressing return. I’m not able to apply any formatting, such as bold, italic, etc. What am I missing?
Drafts formatting is generally done via actions. The app ships with a set of Markdown actions in a Markdown action group, which can be selected in the action list (right pane) or used as an extended keyboard row. This is not the default keyboard row, so you might need to change your selected row to see these commands (details in link above).
This Markdown action group has examples for bold, italics, links, list formatting, headers and showing previews. Many other Markdown-related actions are also available and can be installed from the Action Directory.
Oops, just realized this was in the Mac topic. Per the above, formatting is done with actions and actions are not yet available in the Mac version. They will be coming later this year.