If anyone wants a version that removes white spaces, keeps the inline timestamps and markdown headers.
{{selectorHtml:ytd-transcript-segment-list-renderer|first|replace:" “:” “|markdown|replace:”/(\r?\n){2}(\d{1,2}:\d{2})(\r?\n){2}/g":“\n$2 “|replace:”/(\r?\n)+No results found\s*$/”:“”}}
It added a short “No results found” at the end when there were no more ‘Chapters’, so it also removes that.