(The documentation is generated from moonwave-extractor, see here for the source: https://github.com/wthgame/kitnomicon/blob/main/.lune/docgen-kit-std.luau)

Seemingly extracted newlines are indeed there it's just that there are no line breaks:

Pages on GitHub and deployed, if it helps:
https://github.com/wthgame/kitnomicon/blob/main/src/content/docs/objects/MovingTexture.md
https://github.com/wthgame/kitnomicon/blob/main/src/content/docs/std/KitStdActivation.md (scroll to onactivated)
http://localhost:4321/kitnomicon/objects/movingtexture/
https://wthgame.github.io/kitnomicon/std/kitstdactivation/#onactivated