The Beautifier has 3 options for "Empty lines". When I set it to "Remove" (which should collapse all empty lines) and I try to beautify the following code:
CREATE OR REPLACE PACKAGE BODY my_package IS
var1 VARCHAR2;
var2 INTEGER;
var3 CLOB;
BEGIN
RETURN;
END my_PACKAGE;
The result is:
CREATE OR REPLACE PACKAGE BODY my_package IS
var1 VARCHAR2;
var2 INTEGER;
var3 CLOB;
BEGIN
RETURN;
END my_PACKAGE;
So it actually inserts empty lines.
The expected result from this sample code is that after beautifying it will be unchanged.