When there is no empty line below an embed in Live Preview, there is no empty line in Reading Mode. And when there is an empty line, it is there in both modes.

I have the same result in the help vault, on the left side I switch between pressing enter and backspace. In reading mode you the opposite happening.

Here is the content of the file.

# Example
$$
\begin{aligned}
\quad \cos(x)=
\left(1-\frac{4x^2}{1^2 \pi^2}\right)
\left(1-\frac{4x^2}{3^2 \pi^2}\right)
\left(1-\frac{4x^2}{5^2 \pi^2}\right)
\bigg(...\bigg)
\end{aligned}
$$
^f49426
# Example 1
Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo.
![[Example#^f49426]]
Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
# Example 2
Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudantium, totam rem aperiam, eaque ipsa quae ab illo inventore veritatis et quasi architecto beatae vitae dicta sunt explicabo.
![[Example#^f49426]]
Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.