John Steed's advice was correct.
My wife had an old version of Word on an old computer. When I opened the BK RTF file in Word, it generated the correct index.
While researching this issue I did several Google searches and many results mentioned that a document created or modified on LibreOffice will sometimes not display the same when opened in Word. I found this to also be true with the modifications I made to my report. (the report I updated in Word displays just fine when opened with LibreOffice).
Since I plan to give this report to a print shop to generate my books, and most likely the print shop will use Word, I have decided to create the book in Word on my wife's old (slow) computer. Besides the Descendant report, the book will have pages of photos and family stories (about 150 pages). I create this every 5 years for my maternal grandparent's descendants. I can't see paying $100 a year for software I only use once every 5 years. (BK is such a bargain).
Thanks to all that looked into this for me.