I was using Putty and then switched to TeraTerm. With TeraTerm it appears working. Not sure why Putty was not. I thought I had the configuration correct…
Well … I think that some of your putty settings might have affected it.
Below is the screen I tested.
For carriage return and line feed, I used Ctrl+M, Ctrl+J, respectively. (And the Enter key is required to enter it because of the Local line editing feature)