I am unable to pass new line character (\n) as context value for field "Row Separator" to tFileInputDelimited component.
Below you can see I have declared Row Separator as context.IF_Row_seperator and in second snapshot passing that value as \n
I actually meant to show your job layout as well, but this gives me a clue. I suspect that the file you are loading is having it's escape character (/) escaped to make it behave as a literal. Try this, at the beginning of your job (or after your context file has been loaded), add a tJava and set your context variable there like below...
Then run your job. If that works, my suspicions are correct. This will have been done for good reasons, so I am not sure it is a bug.