Drafts Don't Keep Paragraph Formatting

You might want to try a plugin that will preserve your formatting, WordPress might be stripping some tags.
https://www.ads-software.com/extend/plugins/ps-disable-auto-formatting/
I’ve never used this one, but it could help.

Of course you could always venture out and see if you could fix the problem yourself, I found this resource to be helpful.
https://bacsoftwareconsulting.com/blog/index.php/wordpress-cat/how-to-preserve-html-tags-in-wordpress-excerpt-without-a-plugin/

Don’t know if this is a WordPress or Thematic problem, so it might be worth digging into the Thematic options to see if there is anything about formatting there.

It sounds like a plugin that is attaching a post filter and echoing the data instead of returning it.

Not sure what your coding experience is like but some plugin or you are using.

add_filter( 'the_content', 'filter_function_name' )

or some similar filter during the post/draft save and echoing the data instead of returning it or it’s being returned correctly and the programmer forgot to return it by wrapping it with the php nl2br function.

I’ve had that issue before 9 times out of 10 it’s a filter being echoed (or printed) using echo or print instead of being returned and/or being returned without using the php function nl2br.

Hope that helps.

Um, so I downgraded Thematic to a version that I know worked, couldn’t reproduce the problem. Then I upgraded back to the latest version and now I can’t reproduce the problem. So I guess this is kinda solved?

I know the posts I wrote that had the problem were written on my desktop, so I tried writing a new post on there, saving draft, then coming back later and the paragraphs were kept in tact. The same thing with my laptop, which is where I usually write posts.