Yes, I can confirm it's much better without enhanced rendering.
When enhanced rendering is enabled, it seems to occur both on single logs as well as merged logfiles (my previous assumption was incorrect).
It shows up in custom fields, where the highlight is wrapped and not in a single line.
In the message field (of the grid), with enhanced rendering there's the same issue, however, some highlights come and go depending on the "Message size" setting (even though highlighted text should still be visible). Seems like the highlighting task cuts off at less characters than the display?
Large and above (every highlight visible on the grid):

Medium:

Small, same highlights. Red and yellow items visible in the grid (lines 2-6), but not highlighted.

And also small, but with DX enhanced rendering enabled - see in particular the two custom columns/fields