No required novel template that you have to follow, or else. and even then, you need to realise that there are no rules, exactly. So manuscript formatting rules only apply when you’re ready to go out to agents.
If he sent out his work out like that, it would make a terrible first impression on anyone reading it.
So he types in a huge font size – Arial, size 16, often all bold – and just ignores the spelling errors. I know one (really good) literary author who has poor eyesight and weirdly bad spelling. While the manuscript remains on your laptop and nowhere else, then you can format it just as you please. So your manuscript is basically just a computer file that lives (for now) on your home computer only, but may in time come to sit on the e-reader of your literary agent and (you hope) a whole bunch of editors too.