New escape sequence support for SNBT was added in 25w09. However, although this appears to work for normal chat text (/tellraw), this doesn’t work for other text components displayed in other parts of the game such as the /title commands (title, subtitle, actionbar).
To reproduce, use
/title @p actionbar {"text":"Line 1\nLine 2 with newline"}
You can also replace “actionbar” with either “title” or “subtitle,” and the result should be the same. It will display the same escape sequence fill-in.
Note that this only affects certain escape sequences, such as \n, \r, and \b. Other ones such as \s work fine.
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Addendum: Upon further testing, escape sequences such as \r and \b also don’t work for /tellraw in this version.