I agree this being an important request, perhaps it might be more of a plugin thought.
@JkNML as a current way to workaround this problem I use spacemacs for this kind of things, like you said VS code works too.
My only recommendation is that instead of copy pasting into vs code, it’s a lot better if you open the original file in VS code and edit it, since it’s a plain text file you can use it anywhere and it will update in OBsidian, so there’s no need to copy paste and copy paste back, since you can just manipulate the orginal file in VS Code.
That might make things simplier for now.
Hope that helps