In the middle of the third paragraph of 7.8 Combining Effect,
‘We can use the Applicative instance for List to lift this function over f, to get a function of type f a -> f a -> f a -> f (List a)’
But to lift a function of a -> a -> a -> List a to f a -> f a -> f a -> f (List a) we use the Applicative instance of f, not one of List.