Losing Paragraph breaks when compiling in mobi format

I am creating a mobi document to read on my Kindle. Unfortunately I am losing all my paragraph breaks in my documents. I checked in Scrivener and they are definitely there. I tried clicking the preserve formatting as is checkboxes in compile but still get same result. I have all the plain text conversions boxes ticked in compile settings.

Can someone please tell me what I am doing wrong because I am confused as to why I am losing my paragraph breaks.

Edit: Found a workaround. Compile to epub and then convert to az3… AZ3 is the format used by the latest kindle devices.

Edit 2: ScrivWin Epub compile includes pragraph breaks as intended. The problem seems to be isolated when compiling straight to mobi. Its definitely a ScrivWin issue as I compiled the same project using ScricMac and experienced no issues.