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Note: this happens in both Vue 2 and Vue 3.
The below example is using the Vue 3 starter app. If you add any spaces around a bound attribute in the template, it breaks typescript on all multiline styles in the template.
After (add a space after 'hello'

And if you manually remove the space, the error remains:

The error eventually resolves itself after typing elsewhere in the file. But any spaces in any bound attributes triggers the bug.
Another odd behavior, is that if I use the Volar formatter, the style tags will continuously indent themselves on save. So this might be a hint:
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