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Why do you call this a bug?  -u forces stdin into binary mode, 
and the Python grammar does not allow \r\n line endings in 
program text (it never has, BTW).  Program text has to come 
from a file opened in text mode on Windows, and what you're 
seeing here is the same as what you'd see if you did

f = open('some_python_program.py', 'rb')
exec f.read()

on Windows.