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Converting a paragraph containing an equation from org to latex results in 3 paragraphs, because pandoc inserts a newline before and after the equation. For example this org file:
Some equation here
\begin{equation}
x = y
\end{equation}
where $x$ is something important
Gets converted to the following latex code:
Some equation here
\begin{equation}
x = y\end{equation}
where \(x\) is something important
But if we use emacs' org-mode for the conversion, we get this latex code:
Some equation here
\begin{equation}
x = y\end{equation}
where \(x\) is something important
So it should be considered a bug.
You also get the same issue when using the \begin{subequations} and \begin{math} blocks.