Problem with paragraph spacing

I am having problem with the paragraph spacing staying in. I have the Automatically add paragraphs checked. It doesn’t add the spaces on the back end and show on the site as one big lump of text. If I add the html and go back the front end editor all code disappears. ?? I see other people had the same issue but it’s not fixed for me. I have version 2.2.1

https://www.ads-software.com/plugins/black-studio-tinymce-widget/