This is probably a compatibility issue between editors (Streams vs Autolist).
Disabling the Streams plugin should resolve the problem, I will do some testing later today.

@pdroalves Streams and editor autolist - both use tab and shift-tab for indenting and unindenting. In the control panel, there is an option to change the keyboard shortcuts. You can change the conflicting shortcuts there.

After doing some testing I can say that the plugin works as intended with the newer version of tiddlyresearch.
Creating a blank line after writing only "#" or "*" without any text seems to be normal behaviour.

I have tried writing "# test" and the line is repeated as expected.
Let me know if you are still encountering editing problems.

Good to know! I will update my instance. Thanks.