Autoindent not working

[fornaeffe]

Problem: auto indentation doesn't work.

With a file like this, named "prova.xml":

<?xml version="1.0" encoding="UTF-8" ?>
<root>
    <tag></tag>
</root>

Moving the cursor between <tag> and </tag> and typing return it does not increment indentation nor add a new line for content, it just keeps previous indentation:

<?xml version="1.0" encoding="UTF-8" ?>
<root>
    <tag>
    </tag>
</root>

even if I have "editor.autoIndent": "full" in settings.

Version:

VS Code:

Version: 1.96.4 (user setup)
Commit: cd4ee3b1c348a13bafd8f9ad8060705f6d4b9cba
Date: 2025-01-16T00:16:19.038Z
Electron: 32.2.6
ElectronBuildId: 10629634
Chromium: 128.0.6613.186
Node.js: 20.18.1
V8: 12.8.374.38-electron.0
OS: Windows_NT x64 10.0.22631

XML:

Identifier
redhat.vscode-xml
Version
0.27.2

What I tried:

• Checked with pre-release version of XML (same behavior)
• Checked that auto indentation works with html (it works)
• Checked that "XML" shows on bottom right on the status bar of VSCode (it shows).
• Cheched that "editor.autoIndent": "full" is not overridden for xml, or by workspace settings
• Added

"[xml]": {
    "editor.autoIndent": "full",
    "editor.defaultFormatter": "redhat.vscode-xml",
    "editor.formatOnType": true,
    "editor.tabSize": 4,
    "editor.insertSpaces": true
}

to VSCode settings (also tried to add some of these separately)

• Checked the output for XML Support:

[Info  - 10:44:00 AM] gen 28, 2025 10:44:00 org.eclipse.lemminx.XMLLanguageServer initialize()
Message: Initializing XML Language server
LemMinX Server info:
 - Version : 0.29.0
 - Java : C:\Program Files\Java\jre1.8.0_431
 - VM Version : 1.8.0_431
 - Git acacf75 - [maven-release-plugin] prepare release 0.29.0

• Disabled other extensions

• Reinstalled VSCode

• Toggled developer tools, and the Console displays this error:

console.ts:137 [Extension Host] [relatedFiles] unknown language xml
EYi	@	console.ts:137

• Forced language association both manually (Change language mode in Command Palette) and with

"files.associations": {
    "*.xml": "xml"
}

even if it always showed "XML" on the status bar, even without manual association.