We have enabled default or global htmlencode setting like below as
ISC (WAS Admin) console à Resources àResources Environment Providers àWCM_WCMConfigService , change or set “cmpnt.htmlEncodeDefault” to “true” .
NOTE: Once this setting is enabled you don’t need add the “htmlencode=true” explicitly on the tags
By setting this to true , the reserved HTML characters in the source is converted into character entities. For example, '<' is converted to '<' and ‘(single quote) to &apos ...etc. and it is working as expected for the “property tags” ..etc .
But output of the placeholder tags are not getting encoded and causing presentation break when menu or navigators uses the place holder tags like below.
<li id='[Placeholder tag="name"]'><a href="[Placeholder tag="href"]">[Placeholder tag="name"]</a></li>
After doing some research found that by setting “htmlencode=true” explicitly on the placeholder tag made the output encoded.
This supposed to fix in Portal V7 but looks like it is still a issue and placeholder tags encoding is working as expected only when you set this option explicitly.