Vue - Official extension or vue-tsc version

3.2.2

VSCode version

1.107.1

Vue version

3.5.25

System Info

System:
    OS: macOS 26.2
    CPU: (8) arm64 Apple M1 Pro
    Memory: 326.61 MB / 32.00 GB
    Shell: 5.9 - /bin/zsh
  Binaries:
    Node: 20.19.2 - /Users/sleblanc/.nvm/versions/node/v20.19.2/bin/node
    npm: 10.8.2 - /Users/sleblanc/.nvm/versions/node/v20.19.2/bin/npm
    pnpm: 10.14.0 - /Users/sleblanc/.nvm/versions/node/v20.19.2/bin/pnpm
  Browsers:
    Safari: 26.2

Before 3.1.6

After 3.1.6

Steps to reproduce

• Create a new empty file
• Select Vue as the langue on the bottom right
• Type <script setup></script>
• Press enter between the tags
• You'll notice that the code is indented by 1 tab (4 space) when it should not

What is expected?

When inserting a new line in the <script>, the content should not be indented.
Either of these settings doesn't seem to be applied.

prettier.vueIndentScriptAndStyle
vue.format.script.initialIndent

What is actually happening?

When pressing enter, there is a useless indentation

Link to minimal reproduction

No response

Any additional comments?

No response