[Bug 271791] sed: substitute start/end of line broken with N

https://bugs.freebsd.org/bugzilla/show_bug.cgi?id=271791

            Bug ID: 271791
           Summary: sed: substitute start/end of line broken with N
           Product: Base System
           Version: 13.2-RELEASE
          Hardware: Any
                OS: Any
            Status: New
          Severity: Affects Only Me
          Priority: ---
         Component: bin
          Assignee: bugs@FreeBSD.org
          Reporter: mohd.akram@outlook.com

To reproduce:

printf '%s\n' hello '' world | sed -n -e 's/^//' -e '$!N' -e P -e D

Expected output:

hello

world

Actual output:

hello
h
world

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