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As far as I can tell, there is no way for search for text containing newlines, or replace text with a string containing newlines. The text field just makes it a space. Emacs handles it fine, using the Ctrl-Q quoting prefix.
You can use regular expressions, eg. tick the check box and use \n for line ends. Is that what you are after? Or perhaps I don't understand the report.
The regular expression trick does work in the editor's search dialog. It does not work for Find in Files.
This appears to be a duplicate of 26810. Or perhaps we want to change this bug to be about Find in Files specifically? There is no workaround for the 'Replace' box that I can find. It seems to be impossible to use Search & Replace to insert newlines :(
*** This issue has been marked as a duplicate of 26810 ***