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I was thinking about the details, and I realized what happened, and I wanted to explain that in case anyone looks up this thread in the future. When HL creates a text portal, the initial width of that portal is just enough to fit the text in that portal, but it doesn't try to multiline that text, even on a multiline field. So what would happen is that initially, the width of the portal is set to a very wide amount, probably wider than the space this template is fitting into on the character sheet. So, when you just told it to auto-height it, it checked whether the text needed to wrap, found it didn't, and set the height of that portal to the height needed to show a single line of text (which is the same value it was at before the autoheight). Once the width was set to the right amount, then when it checked where the text needed to wrap in the multiline, it found the wrapping you expected it to have and it calculated the right height to display all the lines that are needed.
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