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(No reply after 1 week) I solved this using Solution 1 of https://stackoverflow.com/questions/10712503/how-to-make-html5-work-with-domdocument.

Same here..I fixed it by editing line 69: instead of

$doc->loadHTML('<?xml encoding="utf-8" ?>'.$block_content);

I added these around it:

libxml_use_internal_errors(true);

$doc->loadHTML('<?xml encoding="utf-8" ?>'.$block_content);

libxml_use_internal_errors(false);

Would be nice if this could be fixed in next update ??