The RCE in New Quizzes has some quirky behaviors when two or more paragraphs of instructions for students are needed for "up front" instructions or within the questions themselves.
The RCE (Rich Content Editor) in New Quizzes doesn't seem consistent with the RCE in other areas of Canvas such as Pages, Assignments, etc. Hitting "Enter" for a new paragraph while building quiz instructions or questions doesn't provide the clean space between paragraphs that is provided in other areas of Canvas.
In chatting with Canvas technical support, they told me the following:
Okay, so I just spoke with an L2, and they said that this is strange, however, it is not necessarily a "bug". It's more like an annoying quirk of Quizzes Next. Since it isn't a bug, what I would do, is fill out a feature request in the Canvas Communities!
An Example of New Quizzes "Instructions"
In the below example (using Chrome or Firefox), I hit "Enter" once to begin a new paragraph. All looks fine.
When I hit "Done" to save my work, the space between paragraphs is removed.
I go back to edit the paragraphs...this time adding an additional line of blank space between the paragraphs. Then, I click "Done".
Now the paragraphs look like I want...similar to how I had originally wanted them in my first screen shot.
An Example of New Quizzes "Matching Question"
When using the RCE while building questions in New Quizzes, after pressing "Enter" for a new paragraph, it does not add space between paragraphs similar to the first screen shot above). Instructors have to manually hit "Enter" twice to add a line of space.
It would be helpful if the RCE in New Quizzes performed the same for all areas...instructions, questions. etc. Even better if it could match the behavior of the RCE in other areas of Canvas.