Syntax highlighting stops working when indented
Initial checklist
- [X] I read the support docs
- [X] I read the contributing guide
- [X] I agree to follow the code of conduct
- [X] I searched issues and couldn’t find anything (or linked relevant results below)
Affected packages and versions
VSCode MDX v0.3.2
Link to runnable example
No response
Steps to reproduce
Use the attached MDX file in archive in VSCode 1.69.2 with VSCode MDX v0.3.2.
vscode-mdx-indent-test.mdx.zip
Expected behavior
Syntax highlighting should preferably happen at all times, meaning:
- if inside wrapper (either indented or not)
- if indented
If the markdown usage of tabs conflicts with this, then at least the wrappers should work.
Actual behavior
First of all, thanks for a cool extension!
It stops working for me however when it is indented and/or wrapped in another element.
Here's the MDX in question (I've attached the file above):
## Heading highlighted
<Wrapper>
## Heading not highlighted
- List item 1
- List item 2
</Wrapper>
## This is also not highlighted
<Wrapper>
## Neither is this
</Wrapper>
I use a lot of wrappers in my MDX files, so this sort of breaks the extension for me...
Runtime
No response
Package manager
No response
OS
macOS
Build and bundle tools
No response
I'm also struggling with this error, MDX v1.0.2:

Similar issue for me in authoring MDX for Astro.
Oddly, if I indent the HTML, the MD highlighting returns, though I'm not suggesting this as a workaround. :)
Is there any progress with this? I think it's a pretty crucial thing to fix. :(
Same here (using v1.0.3):
No-indent "workaround":
With indent "workaround":
I can also confirm the exact behavior as outlined above. Would love to know if there is a solution to this or if peeps are even properly aware of it. (:
It doesn't even need opening and closing tags to be indented. As soon as the opening tag is not indented it starts failing to highlight the inner markdown. Doesn't seem to break everything though, as HTML is still working fine.
