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This issue has been fixed in the latest update of InDesign 2022 - version 17.3
Please update to this latest version of InDesign using Creative Cloud Desktop Application to get the fix.
An error occurred while saving the commentLeo Duffy commented
I've only begun using InDesign's Data merge function but have considerable experience in databases. The 'Remove Blank Lines for Empty Fields does not seem to work in CC2018. In most cases it is putting a blank space in the field, even though there is no space in the data file.
Our work around is a series of find and replace runs on the merged file.
Find Return Space Return (^p ^p) and Replace with Return (^p) - gets rid of double returns with a leading space on the 2nd line.
Find return space (^p ) and replace with return (^p) - gets rid of a leading space on the 2nd line.
Find return return (^p^p) and replace with return (^p) - gets rid of double returns.