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Description
Does this issue occur when all extensions are disabled?: Yes
- VS Code Version: 1.73.1
- OS Version: Darwin x64 21.6.0
Steps to Reproduce:
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Create a file called helloworld.hbs and paste this there: {{!-- outer comment {{!-- inner comment --}} {{hello --}}
Below is what you see on the screen.

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Visit https://handlebarsjs.com/playground.html and in the template section, also paste the above string. Then open your browser console, you will notice compile errors.
Below is what you see on the screen.

According to the the handlebars parser (also as you can see in the handlebars playground as well), the first "--}}" encountered terminates the comment. But VS Code tricks the developer into thinking that the comment is only terminated after the last "--}}". This will lead to errors and a poor experience
Originally opened by @tonyobanon in microsoft/vscode#168179