Indeed, I confirm this issue. We will fix this in a future release.
As Richard pointed out, we have fixed the issue with the incorrect Label Sizing with double <br> tags in our latest Service Pack 2 released on Sep 14. So you could workaround the issue with placing double <br> tags. You can download this build from Your Account.
Please, excuse us for the inconvenience. We have updated your Telerik points for the report.
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