Line breaks for multi-line comments in Markdown cells are broken (interactive Python)

Applies To

• Notebooks (.ipynb files)
• Interactive Window and/or Cell Scripts (.py files with #%% markers)

What happened?

In a .py file, I wrote a markdown cell with python strings (multiple line comments):

#%% [markdown]

"""
# H1 Title

description 1

- item 1
    - item 2
- item 3

description 2

- item 4
    - item 5
- item 6
"""

I run the cell (ctrl + enter), but it shows:

The line breaks and the indentation of list items are incorrect.

Additionally, writing code block within python comments

#%% [markdown]

"""
Writing code blocks in markdown:

```shell
# Comment 1
$ ls 

# Comment 2
$ ls -lh
```
"""

shows no line breaks:

VS Code Version

1.66.0

Jupyter Extension Version

v2022.3.1000901801

Jupyter logs

No response

Coding Language and Runtime Version

Python 3.10.2

Language Extension Version (if applicable)

v2022.4.0

Anaconda Version (if applicable)

No response

Running Jupyter locally or remotely?

Local