I'm answering my own question.

This is an issue with HAML.  The relevant statement comes from
http://haml-lang.com/docs/yardoc/file.HAML_REFERENCE.html

- - -
Haml supports Rails’ XSS protection scheme, which was introduced in
Rails 2.3.5+ and is enabled by default in 3.0.0+. If it’s enabled,
Haml’s :escape_html option is set to true by default - like in ERB, all
strings printed to a Haml template are escaped by default. Also like
ERB, strings marked as HTML safe are not escaped. Haml also has its own
syntax for printing a raw string to the template.
- - -

In the document cited above, there are hyperlinks to how to turn escapin
on and off.

Bascially, the leading = in a HAML statement needs to be cahntged to a
!= in order to turn off escaping.

Just another gotcha in the struggle to upgrade from 2.3.8 to 3.1.1.

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