It was configured with Default Text Renderer, while the Epic user type where this did not happen was mapped to a configuration with Wiki Style Renderer.
Changing the renderer to Wiki Style did the trick, however this still seems like a bug...
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In my opinion is not a workaround because you should setup your project in a right way. Btw, the most important thing is that you fixed your issue. Please mark my answer as accepted so that this thread can be considered closed.
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First of all thank you for your responsiveness, which helped to deal with this so shortly.
However, what do you mean not a bug, and setting my project in the right way.
Are you saying the Default Text Renderer does not support newline on purpose?
Or that it should not be configured for any field appearing in a Create screen?
Default Text Renderer, is the default text renderer, and it should not be an option at all if it is not a proper configuration. A paragraph editor for long text that does not support new-line sounds like a bug to me, especially if there is a distinction between long and sort text fields.
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