Please see the VSTS community problem discussed on the VSTS forum. For some reason, the format of text sync'd from LCS to VSTS includes <pre> tags in the Description field in VSTS. The original data was imported to LCS from Excel. Then sync'd to VSTS. Somewhere along the way, the <pre> tags got added. Also, when adding text to a Description that was sync'd from LCS, VSTS ALSO adds <pre> tags to the manually keyed text. This does not happen in items that we created in VSTS and not sync'd.
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