What is the activity type? Is it Resource Dependent? If so, try changing it to Task Dependent.
The activity type is Task Dependent, so that does not appear to be the issue.
On the General tab of Project Preferences is the box unchecked for Drive activity dates by default? If so, try checking this box and then schedule the project. If this box is unchecked, when the duration of the resource assignment is changed, it will not change the duration of the activity. If the box is checked, changes to the resource assignment duration should change the activity duration.
Using the task dependent activity type, the resources should be scheduled according to the activity's calendar. The resource calendar will not be used when you schedule. The resource calendar will be used when you view the resource analysis. For example if the activity is using a 5 day calendar, but the resources use a 4 day (Mon-Thu) 10 hr calendar, then daily resource analysis will show red overallocation on Friday. However weekly analysis will not show overallocation because both calendars have 40 hours per week.
Drive activity dates by default is checked as displayed below.
So my activity planned duration comes from the 4x10 calendar, but this same activity resource planned duration comes from the 8x5 calendar.
I also noticed that the lag in predecessor details reverts to an 8x5 calendar when my project default calendar is 4x10. In the screenshot below I have a 72-hour lag which comes to 3-days on a 4x10 calendar, but my predecessor details says the lag is 3.75-days matching a 72-hour lag on an 8x5 calendar.
I'm not sure if these issues are related.
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My Calendar in Administration | Enterprise Data | Global Calendars was set to 10-hours/day, as per below screen shot. But my Time Periods in Administration | Application Settings | Time Periods was set to 8-hours/day. This is why my resource assignments and, additionally, lag planned duration were reverting to the 8-hour day increment.
I thought it sufficient to set the Time Periods of my global calendar to 10-hours/day. Apparently, I had to also set the Time Periods in Application Settings to 10-hours/day as well. And, yes, the lag and resource assignment issues were related. Anyway, the problem (or riddle) is solved. See below screen shots for the proper Enterprise Data and Application Settings Time Periods settings for a 4x10 calendar.
Administration | Enterprise Data | Global Calendars
Administration | Application Settings | Time Periods