"Char" is shown in Format list as para format for ALL styles.

[Sherry‏]

In MS Word 2003, the names of paragraph formats are no longer shown in the
Format list. Instead, regardless of the name of the format, "Char" is
displayed in the format list, both on the Formatting toolbar and in the
Styles and Formatting list that displays on the right side of the screen.
This has happened in three documents that I have inherited. Previously, the
name of the paragraph format was displayed as expected.

[Klaus Linke‏]

Hi Sherry,

First, I'm make sure it is a problem with the documents, and not with Word:

Create a new document, type in a paragraph, and format it in "Heading 1".
Then select a few characters in that paragraph and format those as "Heading
2".

Word has now created a character style (Char/Link style) "Heading 2 Char",
but displays the paragraph style "Heading 2" instead.

If you should see "Heading 2 Char" in the style dropdown or the taskpane,
it's likely a problem in Word.
You might try "Detect and Repair" from the help menu.

In case it's a problem with some documents only, you could try to get rid of
the Char styles with a macro.
You may loose some formatting, though.

Sub DeleteLinkStyles()
' The formatting that was done by the Link style is removed, too!
Dim myStyle As Style
For Each myStyle In ActiveDocument.Styles
If myStyle.Type = wdStyleTypeCharacter Then
If myStyle.LinkStyle <> _
ActiveDocument.Styles(wdStyleNormal) Then
' MsgBox myStyle.LinkStyle
myStyle.LinkStyle = _
ActiveDocument.Styles(wdStyleNormal)
' To only remove Char styles:
' If Right(myStyle.NameLocal, 4) = "Char" Then
myStyle.Delete
' End If
End If
End If
Next myStyle
End Sub

Regards,
Klaus