Support folding Pug blocks in Vue in VS Code

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Is there a way to get VS Code to support folding blocks within Pug when used in Vue single-file components? That is:

<template lang="pug"
...
</template>
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Steve Bennett On BEST ANSWER

Based on this bug report the fact VS Code isn't doing this already seems to be do with using Vetur.

Adding this to settings.json fixed it:

    "[vue]": {
        "editor.foldingStrategy": "indentation",
    }