When a quote block citation includes line breaks, attempting to press Arrow Up from any of a blank new line of the citation will result in the caret being moved to the quoted text, rather than the line preceding it.
Caret is moved to moved to the first line of the citation.
Caret jumps to quoted text.
Likely something going on with edge detection in WritingFlow.

I'm having trouble repeating the original steps here, due to as best I can tell a bug in TinyMCE, reported at https://github.com/tinymce/tinymce/issues/4488.
Most helpful comment
Related https://github.com/WordPress/gutenberg/issues/7838