Hello Donal,

Thank you for your email.

I did reproduce your issue.

Unfortunately, this issue is by design. Since Format as a table will create
a source and overlap the existing source, you could not format the web
query.

Another option is use the XML in the Developer Tab which you could import
the xml from Sharepoint directly as a XML source. The XML source will
create a table and you don't need to format it again.

Please have a try and let me know the result.

Sincerely,

Wei Lu
Microsoft Online Community Support

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