Unexpected formatting and button behaviour

[shaanvaidya]

Trying to apply formatting across paragraphs results in unexpected formatting in the form of extra new lines.
Also, is there a way to get the new buttons behaviours to be more the original medium editor's?
For e.g. Consider the text "Medium Editor" If I apply bold to "Medium " and "Editor" separately, the html should ideally be<b>Medium Editor</b>rather than <b>Medium </b><b>Editor</b>