I’ve had a number of reports recently regarding loss of line breaks when sending out Post or Page notifications. Nothing has changed in Email Users with respect to formatting the post prior to sending it via email. However, the fact that several people has run into this problem concerns me.
The only thing I can think of which would result in loss of line breaks is if the the_content() or the_excerpt() functions are not calling the wpauto filter (which both do by default unless turned off). As noted in the Codex page, some plugins and themes remove the action.
I’ve added a check within the Email Users Dashboard widget to report the state of the hooks which could reformat the text. The the_content hook is the most likely to change the formatting of the post content but the other two listed could also affect it in some cases.Email Users Beta (790 downloads)
If you are having this problem, please try this download and let me know what your Dashboard looks like.