The reason there are CrLf characters in the replace string is due to the way the search engine does multiple line searches. By default Multi-Edit only deals with a line at a time so to allow multiple line regular expression searches, the search engine creates an internal buffer to hold the matched pattern and CrLf characters are inserted whenever a new line is added to the found string. This buffer is returned as Found_Str and is used by the Replace function to insert the final string into the text. Since Replace is expecting Found_Str to be a single line it doesn’t adjust for the CrLf characters found in it.
This is a limitation of the current code and we haven’t gotten around to redesigning the Replace routine to handle mutiple line Found_Str. I’ll add this to the list of things to look at while I’m adding the Perl RegEx support.