I'm glad that was the problem. There are probably cases where a user intentionally puts a line feed in a default value (maybe with a varchar2 data type). In your case, it seems like an Oracle bug that the data line feed and comment marker is in there.
I don't think Toad should look at values in this column and try to determine what the user really wants. Toad should assume that the Oracle data dictionary is correct. Otherwise, we will probably cause some other problem.