If Vassal plays the discarded card, playing the discarded card is not indented as part of resolving Vassal. (cf Sauna/Avanto, Throne Room, etc that correctly indent.) It happens in all Vassal games, but here's one in case it helps: #8433981. I haven't had a chance to confirm if any other cards that play cards (Golem, Herald, etc) don't correctly indent.
Thanks for reporting this (and other) bugs. Normally the indention works, it seems to have slipped through with Vassal.
Indented????