Text::CSV never attempted to or claimed to deal with embedded newlines. Nor is it a maintained module. It was superceded by Text::CSV_XS long ago. Text::CSV_XS (as oppossed to Text::CSV) handles newlines if the flag binary=1 is passed. Modules like DBD::CSV which use Text::CSV_XS set that by default and therefore support embedded newlines by default.

And, not to nitpick, but I think "wrong" is a bit harsh. There is no standard definition of CSV so there's no standard to be wrong against. But certainly it's more limited in what it can handle, one of the reasons that Text::CSV_XS came into existence.