When viewing an activity of type inbound email, the text is displayed in "details". However, althought the database contains it in plain text and html, it is displayed as plain text without LFs, what makes it hardly readable.
To upload designs, you'll need to enable LFS and have an admin enable hashed storage. More information
Child items 0
Show closed items
No child items are currently assigned. Use child items to break down this issue into smaller parts.
Linked items 0
Link issues together to show that they're related.
Learn more.
In order to verify this issue, an inbound email activity has to be created. Since this is difficult on the testing environment, I prepared the input for the API Explorer:
As pointed out by @jitendrapurohit on the GitHub PR (here), I can confirm HTML-containing content being cluttered with <br> tags due to that additional Smarty filter. Stepping through the code, I would say the nl2br filter should not be necessary in the first place, because non-HTML content is being tampered with in HTML_QuickForm_textarea::getFrozenHtml() already:
For elements containing "wysiwyg" in their class attribute, this rendered value is then replaced with the raw value again in CRM_Core_Form_Renderer::elementToArray():
The original problem should be fixed within that code path, and not the template file. Filtering everything through nl2br in the template is much too generic an assumption.