Carriage return (enter key or line break) from clipboard text (when pasted) is not honored in Powershell

Scenario:

Connect to VM using vmconnect (Hyper-V Connection)
Start a powershell form cmd window
copy and paste clipboard below text from HOST to guest (Clipboard->Type Clipboard Text) will see that carriage return (or) ENTER key (or) line break is recognized by the powershell instead line break will be showed as ^MM.

Though there are number of ways to get around to it; it just does not work as expected causing bit of delay in the flow/speed of getting things done.

More tests done:
CMD.exe prompt from the same VM could successfully identify carriage returns.

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