If lines are wrapped at single line breaks it means the text becomes not reflowable. If you view the notes in a panel that is narrower than the original panel they were created in, you get ugly multiple breaks caused by wrapping.
This is why *all* text markup languages use blank lines to denote paragraphs and single line breaks are treated as spaces. That is what calibre is doing everywhere except the viewer highlight panel, which was a bug, now fixed.
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