Could someone point me to where the classic block gets converted into HTML in the block editor?

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In the block editor, if you start with a migrated page all in the classic block and make a change / hit update, it saves the content just as it did in the wysiwyg editor. If you add another block – even a classic block – it converts that content to HTML, replacing newlines with content wrapped in paragraph tags, etc. Could someone point me to where this occurs? TIA.

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