Resolved
Reported for: Toolset Blocks 1.2.1
Resolved in: Toolset Blocks 1.3
A Content Template (blocks) that outputs the Post Content using a Single Field block doesn’t apply auto-paragraphing to the content.
So if the posts themselves were edited with the classic editor, there will be no paragraphs in the content on the front end.
This has now been fixed in Toolset Blocks 1.3