vetur: vue-html not working for SFC

• I have searched through existing issues
• I have read through docs
• I have read FAQ
• I have tried restarting VS Code or running Vetur: Restart VLS

Info

• Platform: Linux
• Vetur version: 0.29.0
• VS Code version: 1.50.1

Problem

I have a vue-typescript project. I only want to disable the formatting (formatter: prettier) for <template>...</template> in the .vue SFC files and format the typescript and SCSS.

Content of settings.json in my working directory

{
  "editor.quickSuggestions": {
    "strings": true
  },
  "editor.defaultFormatter": "esbenp.prettier-vscode",
  "editor.detectIndentation": true,
  "editor.tabSize": 2,
  "editor.insertSpaces": true,
  "vetur.format.enable": false,
  "css.validate": false,
  "less.validate": false,
  "scss.validate": false,
  "[vue-html]": {
    "editor.formatOnSave": false
  }
}

Content of .prettierrc

{
  "endOfLine": "lf",
  "semi": true,
  "useTabs": false,
  "tabWidth": 2,
  "singleQuote": true,
  "trailingComma": "none",
  "bracketSpacing": true
}

Reproducible Case

1. Create a Vue Project vue create test-project
2. Install Prettier yarn add -D prettier
3. Paste the contents of settings.json (from above) in **/.vscode/settings.json
4. Paste the content of prettier configuration (from above) in **/.prettierrc
5. Reload editor ⇒ Open any *.vue file (say App.vue) ⇒ Press CTRL+S