Compile creating just one paragraph in LaTex Memoir book

Ioa, I have a recurring problem with the styles, when using a template saved from your sample project: carriage returns are ignored.

The document is written in rich text. Paragraphs end with a single carriage return. The paragraph has a Body paragraph+character style assigned. The Body style also exists in the Compile format.

Yet, paragraphs are not broken when converted to HTML. The source MD file has no double carriage return breaking paragraphs, so the problem starts when compiling the Scrivener project to Markdown.

What am I doing wrong?

Paolo