Bulk Insert can import embedded CR/LF pairs in text fields. Something else is going on with the raw data in your source at the specified column (23) on the second row. There are a number of causes for the "text was truncated" error. Some of them are touched on in this thread. One common cause which particularly bites those using the Wizard is not specifying the target column width. It doesn't matter if your target table is set up correctly; if the column width specified in the import isn't big enough, you'll get this error.
You might consider performing a bulk insert using T-SQL and a format file; if you need to repeatedly test your import process and refine it, it's a lot easier to make modifications and re-run.
Also, as noted in this answer, the embedded CR/LFs will be present even if the tools (e.g. Management Studio) aren't displaying them to you.