Hi There,
The proper way to handle multi line json is through the multi-line-regex log_format.
 <localfile>
  <log_format>multi-line-regex</log_format>
  <location>/var/log/testlog.json</location>
  <multiline_regex replace="wspace">^{</multiline_regex>
 </localfile>
This should be enough to be able to handle your multiple lines log.
I tested this configuration by annexing your provided log to the /var/log/testlog.json file declared in that config block while checking the archives.json output.
This output a proper single line json in archives, which I then unescaped and tested on our logtest tool.
This log is quite long, so I'm attaching the output of the tool as a text file.
Let me know if this works for you as well.