I have a macro with just 1 action, Prompt with List from File. The text file contains empty lines. It seems that Prompt with List from File does not show empty lines. Is there an option that allows Prompt with List from File to display empty lines as well?
You only posted the action, so I'm only guessing -- but did you read your file into the Local__text variable first? Did you turn off "Trim lines" (forgot to mention that earlier -- my bad) in the prompt's settings? You could also use the file directly as input to the action, saving the result to the variable.
Here's a proper demo, using the same text file and path as you had: