I was able to get this resolved using ChatGPT:
cat test.txt | sed -z 's/\r\n\^/,/g' | tr -d '|' | awk -F, "{ key = \$1; for (i=2; i<=NF; i++) { values[key][\$i] = values[key][\$i]\",\"\$i } } END { for (key in values) { for (value in values[key]) { printf \"%s%s\n\", key, values[key][value] } }...