> And also no PDF, because \stopenvironment executes \endinput :-)

Whoops!  I'd been testing so many variants in order to find the
minimal file and had outsourced the checking to 'grep hbox' (rather
than reading through the texexec output by hand).  So I didn't even
notice the lack of a PDF file.

So that leaves the original problem, which is why the hbox is overfull
in this minimal file (that produces a PDF!):

\setupindenting[medium,yes]
\starttext
\placeformula\startformula
x = 10
\stopformula
\stoptext
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