+1, same issue.
I often use blockquote (or callout) to “pack” codeblocks and forumlas with several explanatory paragraphs together, so I can use [[filename#^block-id]]
to refer them as a whole elsewhere in my vault.
So this rendering problem is quite annoying, sometimes I have to use VSCode to edit the source code. If this problem can be fixed, it will help a lot.