I post a comment five days ago here https://github.com/jgm/pandoc/issues/1196#issuecomment-876343846. Since no further reply, I come here for more communication.

Basically, it seems that a previous enhancement is incomplete. There was a fix eliminating the two blank lines occurred ahead and after latex environment. While it works for "equation" environment,  it doesn't for "subequations" environment. 

Tested using Pandoc 2.12. Some other computing program is connected with pandoc in my computer, so by far I have not tested this on latest version.

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