Remember to cover the basics, that is, what you expected to happen and
what in fact did happen.  You don't know how to make a good report?  See

     https://orgmode.org/manual/Feedback.html#Feedback

Your bug report will be posted to the Org mailing list.
------------------------------------------------------------------------
Org-babel's handling of MATLAB block output with the =:results session= argument is broken. Here is some sample code along with the expected result:

#+begin_src matlab :results output :session *MATLAB*
a = 3;
b = 4;
c = a + b
#+end_src

#+RESULTS:
: c =
: 
:      7

However here is the actual result:

#+begin_src matlab :results output :session *MATLAB*
a = 3;
b = 4;
c = a + b
#+end_src

#+RESULTS:
#+begin_example
a = 3;
b = 4;
c = a + b

c =

     7
'org_babel_eoe'

ans =

    'org_babel_eoe'
#+end_example

There are two separate problems:

1. The =org-babel-octave-eoe-indicator= is not being stripped.
2. The comint input is being echoed in the output.

#1 is easy to fix. The problem is in the function =org-babel-octave-evaluate-session=, in the line:

 #+begin_src emacs-lisp
 (cdr (reverse (delq "" (mapcar #'org-strip-quotes
						(mapcar #'org-trim raw)))))
 #+end_src

Where empty lines in the output are being removed with =delq=. =delq= compares with =eq= instead of =equal=, which fails on blank lines. Replacing this with =delete= works fine.

#2 is a much trickier problem to solve. Here is the body of the input as it appears in the MATLAB session:

#+begin_example
>> a = 3;
b = 4;
c = a + b
'org_babel_eoe'
a = 3;
>> b = 4;
>> c = a + b

c =

     7

>> 'org_babel_eoe'

ans =

    'org_babel_eoe'

>> 
#+end_example

Here `>>' is the shell prompt, which is absent from the raw comint output as given to org by comint-mode. =matlab-shell= does not work like other comint shells in that it doesn't echo bulk (/i.e./ multi-line) input all at once. Instead, it echoes each line of input and follows it with its output. This interspersal of input and output is causing =org-babel-comint-with-output=, the function (actually macro) responsible for removing the comint input echo text from the raw comint output, to fail. This macro assumes that the raw comint output looks like 
#+begin_example
<<contiguous comint input from org source block>>

<<contiguous comint output>>
#+end_example

as you can see from this code from =org-babel-comint-with-output=:
#+begin_src emacs-lisp
	 (when (and ,remove-echo ,full-body
		    (string-match
		     (replace-regexp-in-string
		      "\n" "[\r\n]+" (regexp-quote (or ,full-body "")))
		     string-buffer))
	   (setq string-buffer (substring string-buffer (match-end 0))))
#+end_src

To fix this, either =org-babel-octave-evaluate-session= or =org-babel-comint-with-output= needs to be modified. This problem is local to MATLAB, it does not happen with GNU Octave, which shares most of its org-babel code with MATLAB's. So I wrote a patch to the former that does additional line-by-line processing on the raw comint output to detect and remove the echoed input. (Patch is attached.) However while this fixes the problem it's not a robust solution.

-Karthik