When you enter a description for your component, that information is added to the com_mycomponent.sys.ini language file as COM_MYCOMPONENT_XML_DESCRIPTION. If you put carriage returns in the description, that worked fine in Joomla 4.3. However when I upgraded to Joomla 4.9, my language translations no longer worked on administrator screens. For example, under the list of Components, instead of showing "My Component", it displays "COM_MYCOMPONENT". Took me a while to figure out the problem was with the subject language file. But if you edit the language file and remove the carriage returns in the description so they are all on one line, then the language file is properly handled by Joomla.
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