I’m not 100% sure if this is a version 3.x issue as I can’t remember seeing it pre-update, but I notice in Visual mode in TinyMCE that blockquotes don’t display like they do when the post is published, but just look like normal paragraph text – except indented to the right a bit. Thexe are basic blockquotes, achieved when hitting the ” button on the TinyMCE controls. Principally they’re not italicized, but also the ‘block’ doesn’t show (which isn’t such a big issue). I’ve had similar issues to this with other themes and the solution is usually non-obvious.
I’ve tried CSS such as:
.mce-content-body blockquote p {
font-style: italic !important;
}
But no joy.