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I ran just that snippet to create a document and it worked.  The problem remains, however.  Here is an actual example from a larger document:

<p><img class="pull-left" src="-valid-url-" alt=""> For each question, you will choose the best answer from the four possible choices. You should answer every question, even if you are just guessing. If you get stuck on a question, you can place a mark in the margin of the test booklet and return to it later. If you decide to change your answer on the answer sheet, make sure you erase the first answer choice completely; failure to do so may result in a wrong answer being identified by the scanner.</p>
<p>During the test, you may write in the test booklet or on scrap paper provided specifically for the test administration. Any paper you use <strong>WILL</strong> be collected by the Proctor prior to your departure from the testing session.</p>

The 'Any paper you use <strong>WILL</strong> be' portion comes out in Word as:

Any paper you use  WILLbe

There is an extra space before and no space after it. If I test just those paragraphs alone as a document, it works fine.  In the larger context of the full document it doesn't work.  I even tried setting a style for strong to have 0 margin before and 10px after, without success.

I wish I could paste the .html and .docx files here to demonstrate.