Found my solution ...
(This is located in the directory above each specific question type)
There is a function called "get_per_answer_fields()".
$answeroptions = $mform->createElement('text',
I changed the line to
$answeroptions = $mform->createElement('editor',
Since I did the change outside of any specific questions, all questions that had this problem (multiple choice, matching, short answer, etc) are now fixed.
It definitely pays to get a good night's sleep to clear your mind.