Create a Playlist problem with newline characters

When you load those files into MP3tag - what does the status bar at the bottom of the window tell you about the number of loaded files?

If you think that your phenomenon has something to do with a file itself, you should check it for consistency - see this link for links to some utilities that help in many cases:

I seriously doubt that this is an MP3tag bug as MP3tag usually does not invent filenames.