"Set default knowledge field values" feature does not work as expected with HTML in Text field.

 "Set default knowledge field values" feature/fields does not behave the same as a Template. Using HTML for the Text field renders properly with a Template, but not the default values on a Knowledge Base record.

• From a Knowledge Base record, go to "Set default knowledge field values", choose "Text", and enter HTML (see attached "Knowledge Base with defaults.png").
• Create a template for a KB article with the same HTML from above (see attached "Template setup.png").
• Create a new KB article and set the "Knowledge base" field to the Knowledge Base from above. A dialog will appear to confirm that you want to set the default values. Note: This dialog is very messy/busy when HTML is in the Text field. (see attached "Default value dialog.png"). Click "OK".
• The KB article's text field is populated with the HTML in the field, rather than the formatted text (see attached "Defaults applied.png")
• Apply the template created above. The "Text" field shows the formatted text (see attached "Template applied.png"). I 

Use the platform's template feature (Toggle bar) instead:
https://docs.servicenow.com/csh?topicname=t_ToggleTheTemplateBar.html&version=latest

or upgrade to a version where fix is available.  As of the Paris release a permanent solution is still under evaluation.