Prettier extension's format-on-save doesn't work anymore

How To
1

Any idea how to fix? The inserted code is often badly indented and I don’t know about others but my personal ability to wrap my head around badly indented code is practically zero.

Here is the snippet from my .vscode/settings.json and I usually have a custom one in every project. While I open the whole folder of projects in the editor so I can work on multiple related projects. Is this even taken into account by cursor?

"editor.defaultFormatter": "esbenp.prettier-vscode",
  "editor.wordWrap": "wordWrapColumn",
  "editor.wordWrapColumn": 150,
  "editor.formatOnSave": true,