Foldable regions are temporarily incorrect in the editor

Please check out this video: https://youtu.be/qcmTZT1qzTQ

The same code behaves different between Cursor and VSCode in terms of folding. Cursor is folding wrong.

Here’s a snippet you can use to reproduce

export function Copilot() {
  // Stores the full current collateral object
  const [collateralCurrent, setCollateralCurrent] = useState<CopilotCollateral | null>(null);
  /*
  The data of the collateral to fetch,
  some APIs like the chat messages contains these basic collateral data that we
  can use to fetch the full collateral object
  */
  const [collateralToFetch, setCollateralToFetch] = useState<{ id: string; title: string } | null>(null);
  const collateralUpdateRaceGuard = useRef(createRaceCheck());
  const collateralCurrentVersionForUpdateRef = useLiveRef(
    collateralCurrent
      ? {
          id: collateralCurrent.id,
          version: collateralCurrent.version,
        }
      : null,
    [collateralCurrent],
  );

  const updateTimeoutRef = useRef<ReturnType<typeof setTimeout>>();

  const getSelectedChatQuery = useApiCopilotGetChat({
    enabled: !!selectedChatId && selectedChatId !== COPILOT_NEW_CHAT_ID,
    input: {
      userId: userInfo.userId,
      accCN: userInfo.accCN,
      threadId: selectedChatId!,
    },
  });

  const [collateralIsLoadingManual, setCollateralIsLoading] = useState(false);
}

Note: While trying to reproduce myself i found that deleting the whole file content and then restoring it was fixing the issue