`\u0027\n\u0027` equals `'\''` in Java?

Question

I was playing around with Java Unicode Escapes and accidentally found the following interesting oddities. Here is the code that I wrote:

static void main(String... args) {
        /*
         * \u0027 - single quote
         */
        char e = \u0027\n\u0027;
        char f = '\'';

        System.out.println(e == f);
        
        //output: true
}

Looking at the compiled code, the Java compiler translated them into the same character literal.

char e = '\'';
char f = '\'';

By what conversion rules e has become a ' instead of a linefeed \n?

BTW I am using Oracle JDK 19 on Windows 11.

EDIT: It seems like the issue is related to Java compilers failing to work according to the Java Language Specification.

EDIT: It seems like the issue happens when Oracle JDK 19 runs in JLS 18 mode. (I am not sure how to say this properly)