I get this too. I use these indentation settings:
- Set
indent size
to 2 spaces (the minimum) - Set
indent using tabs
to false/off
I also tried with smart indent lists
off/on but it’s still not working right.
I notice the fold lines are showing for ~4 space divisions. There should be fold/nesting lines for every level (i.e. every 2 spaces).
This bug was introduced in a recent update (approx December 2023), previously this worked correctly.
When testing this just now I noticed that the indentation behaviour was different (more inconsistent) when typing the list vs pasting all items in one go. So there may be some smart code misfiring when typing line by line.
I suspect there’s an assumed indent level of 4 somewhere in the code that needs to be updated to use the values from preferences.