Vue SFC: HTML folding broken - Wrong lint warning

[antoinematyja]

• I have searched through existing issues
• I have read through docs
• I have read FAQ

Info

• Platform: macOS
• Vetur version: 0.27.1
• VS Code version: 1.48.2

Problem

When I launched VSCode this morning I wasn't able to fold the HTML in my .vue SFC file. Also weird lint warnings appeared.
I quickly identified this was coming from Vetur. I tried to downgrade to 0.26 and it works fine.

As you can see I can fold <template> but nothing inside. Also there is a lint warning which should not happen:

[vue/no-multiple-template-root]
The template root requires exactly one element.

Reproducible Case

The issue happens with any vue SFC file, for instance:

<template>
  <p>
    <div>{{ greeting }} World!</div>
  </p>
</template>

<script>
module.exports = {
  data: function() {
    return {
      greeting: "Hello"
    }
  }
}
</script>

<style scoped>
p {
  font-size: 2em;
  text-align: center;
}
</style>

Thanks!

Edit: here is my .eslintrc.js if this helps:

module.exports = {
  env: {
    browser: true,
    es2020: true
  },
  extends: [
    'plugin:vue/essential',
    'standard'
  ],
  parserOptions: {
    ecmaVersion: 11,
    sourceType: 'module'
  },
  plugins: [
    'vue'
  ],
  rules: {
    'space-before-function-paren': [
      'error',
      {
        anonymous: 'never',
        named: 'never'
      }
    ]
  }
}

[yoyo930021]

The HTML folding is same to #2234

[antoinematyja]

My bad, I searched for "fold" in opened issues and this did not showed.