List of steps to reproduce (step by step, including full links if applicable):

• Use the wikicode foo{{lc:*}}bar

What happens?:
The parser inserts a newline, resulting in the expanded wikitext

foo
*bar

which is interpreted as a bullet list.

What should have happened instead?:
Lowercasing an asterisk should not insert a newline. The expanded wikitext should be foo*bar

Software version (if not a Wikimedia wiki), browser information, screenshots, other information, etc.:
Currently happening on enwiki, so 1.38.0-wmf.23 (5306f97)