[bug] Code collapsing not based on indent not working

[TheDutchCoder]

• VSCode Version: 1.22.2
• OS Version: High Sierra 10.13.4

Steps to Reproduce:

1. Copy code from screenshot example
2. Hover in the gutter to see the collapse mark in the wrong place

Does this issue occur when all extensions are disabled?: Yes

Clarification

The latest version of VScode is supposed to have collapsing markup based on actual markup and not indentation, but that doesn't seem to be the case.

Screenshot

[mjbvz]

This feature was disable by default in master due to a important bugs. Set "typescript.experimental.syntaxFolding": true to re-enable it. However jsx folding will not work due to microsoft/TypeScript#23273