Are vim key bindings broken?

I'm still learning vim so this may be a dumb question but I've noticed that the vim bindings don't match the bindings in vim tutor.

The biggest issue is that if I'm in insert mode and press enter, I seem to switch to some other weird mode that has a subset of insert's functionality. I've switched back to the green square and can still insert text but I can't move the cursor up or down with the arrow keys. Pressing escape again fixes this.

Any idea what I'm missing here?

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