XSLT - carriage return not working for text output

Problem:

When deploying an XSLT, the carriage return or line feed for text output would not show up when looking at the style sheet in the MDS repository. This was how I was trying to do the carriage returns:

<xsl:text>&#xd;</xsl:text>
<!-- OR -->
<xsl:variable name='newline'><xsl:text>
</xsl:text></xsl:variable> 

But when I would look at the XSLT in the MDS Repository, it would ignore the line breaks and just close the <xsl:text/> tags:

<xsl:text/>
<xsl:variable name="newline">
<xsl:text/>
</xsl:variable> 

Solution:

I ended up having to do it with a variable like so:

<xsl:variable name="newline" select="'&#xD;&#xA;'" /> 

This would show up correctly in the MDS repository and the text output would give the expected result.