In the attachment, in the red box.
I've looked there, and i cannot see it making sense, because the part i highlighted in my OP has lost formatting.
in general,
nav template consists of code similar to below
<div class="navigation">{$nav}{$activesep}{$activebit}</div>
AND
nav_bit template is
<a href="{$navbit['url']}">{$navbit['name']}</a>{$sep}
see also
nav_bit_active template
<span class="active">{$navbit['name']}</span>