Adam, that example works ok.
I can see the problem - when the editor opens with no text, then the BreakElement setting gets ignored and defaults to <p>.
I have a page for editing existing texts, and there it works ok. But my page for adding new texts has this problem. If I initialise the text box with for example "type here", then the problem goes away.
But I want the text box to be empty, I tried initialising it with a zero-length string, and a space, but still the same.
Can you fix this please? </p>