• Assuming that the first translated string is the syntax you are expecting, correct?
• Further assuming, that you called the options dialog using Tools – Add-Ins – Java Add-In – Setup, correct?

Please note that these options are the generic options that will be applied to a Java source file when you add the file to the project. In larger Java projects, however, certain files often have to be localized with completely different options. Therefore, these options exist explicitly for each Java file and can also be set differently in each case.

Go to the project view, filter by source files, and select one or some files. Right-click the selection and call String List Settings from the context menu. In the upcoming dialog, click on Options. You will see the same setup dialog, but now just with the setting for the selected file(s).

You are correct on your assumptions. I do know about the string list settings, but I still get same results. Trying to figure out what setting will create the backslashes (escape characters). 

Maybe you can send a sample file by mail.

Yes. What email?