[BUG] Code editor inserts additional escape and new line characters

[harrchen88]

To Reproduce

Open Code editor from cloud shell in subscriptions (6fa6267c-594e-452d-b328-96de21592df9 in fdpo.onmicrosoft.com tenant).
Command: "code junk.txt"
Type in an open curly bracket, a new line and a close curly bracket, save the file. You see new line characters are inserted.
This is the output from command: "more junk.txt":
more junk.txt
"{\r\n}"
This behavior doesn't happen in other subscriptions (like b7c12d9f-e21b-4abe-9377-aafff5a79f00).
Commands you ran
code junk.txt
more junk.txt

Observed Behavior

Extra quote and new line characters are added

Include error output here
No error, but the file has additional characters added:
"{\r\n}"

Expected behavior

It should be just (without the extra quote and \r\n character, like below (from MSDN subscription):
{
}

A clear description of what you expected to happen instead.
File should be saved as typed/pasted without extra quote or line breaks added.

Is this specific to Cloud Shell?

Yes, and only to specific subscriptions.
outside Cloud Shell - for example,
by installing it on your own computer. If so, it is likely to be a bug in that tool or in the Azure service it communicates with,
not in Cloud Shell. Please file the issue with the appropriate project.

Interface information

How are you accessing Cloud Shell - https://shell.azure.com, https://portal.azure.com, via Windows Terminal, or some other method?
If a browser, which Operating System and browser are you using? (ex. Edge on Windows 10)

Open cloud shell from https://portal.azure.com

Additional context

Add any other context about the problem here.

[darrentu]

Thanks for letting us know. We are looking into it