vBulletin 4.2.5 is end of life and will not be receiving any future development. Warning: vBulletin 4.2.5 is not compatible with PHP 7.2.0 or higher.
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The activity streams strips bbcode- it is not designed to parse it because it could mess up the style of the page. There is no setting to enable this- if you really want to do it it would require custom coding which we do not support- but you could ask for help with custom coding on www.vbulletin.org.
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