Normally, if I use up/down arrows, the movement respects the folded lines. In other words, from inside a long paragraph, up/down arrows will bring me one line above/below as expected.
However, in vim mode, moving up or down (be it via
k or with the arrows) moves according to the actual lines, rather than how the lines appear to be folded. I suppose this might be by design, but I personally find it quite annoying. Ideally, vim mode and regular mode would treat vertical movement in the same way.
There was a very similar discussion regading the same issue in the vim extension for vscode which might be of interest, see Treat folds the same as normal lines for cursor movement · Issue #25097 · microsoft/vscode · GitHub.