I managed to fix this somehow. In the workflow rule that i created on Note Item Type, i was first copying the value of $PlainText which i changed to $Comment and it started working.
Rich text Custom field not showing proper text when updated via Workflow Rule
I am trying to create a custom field of Data type "Rich Text Area" which gets updated via workflow rule to show the latest note put by the user.
However the Rich text being entered by the user in the note when gets updated by workflow rule loses all its formatting and puts all the text in one line.
Any suggestions on how to fix this?
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Would you be willing to share this rule?