Yes, I can recreate this even by just right clicking inside Section0001.xhtml and asking it to Reformat XHTML -> Mend.
It appears to happen when bare text is a child of a div and the preceding child of the div is any type of block level tag including p, h1-h6, another div, blockquote, etc.
So somehow that code that converts the gumbo node tree (dom) back to strings is inserting a return after a block element that is a child of a div (or before bare text).
I will see if I can fix this.
KevinH
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