Python regex, matching pattern over multiple lines.. why isn’t this working?

I know that for parsing I should ideally remove all spaces and linebreaks but I was just doing this as a quick fix for something I was trying and I can’t figure out why its not working.. I have wrapped different areas of text in my document with the wrappers like “####1” and am trying to parse based on this but its just not working no matter what I try, I think I am using multiline correctly.. any advice is appreciated