I've just found the answer to my question - the text layer needs to be converted to a vector layer. Also ensure that there are no keyframes on the timeline that were placed there without the alt key pressed.

I understand from the Anime Studio 10 manual that text can be made to bend when following a path by pressing the 'alt' key when using the 'follow path tool'. I have tried it without 'rotate to follow path' ticked in the layer settings and with. I have also tried with 'allow animated layer effects' t...