Is there a way to get Pug templates working?

According to the Vite github issues, it should just require
pug
to be installed. I've done that but VsCode seems to be formatting
pug
markup incorrectly.
Pug is an indent-senstive format but it's taking this:
<ApplicationShell bind:elementRoot>
  .flexcol
    DocInput(attr={"name"})
    textarea(bind:value={$documentStore.system.description})
    textarea(bind:value={$documentStore.system.lore})
</ApplicationShell>

and converting it to this
<ApplicationShell bind:elementRoot>
  .flexcol DocInput(attr={"name"}) textarea(bind:value={$documentStore.system.description}) textarea(bind:value={$documentStore
    .system.lore})
</ApplicationShell>

... which is annoying and broken. Any thoughts?
It seems to be the
Svelte for VsCode
plugin that is doing this mal-formatting.

However, even if I disable it, the build does not seem to work with pug templates... it renders them as plaintext
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