Prerequisites

• I have written a descriptive issue title.
• I have searched all open and closed issues to ensure it has not already been reported.
• I have read the troubleshooting guide.
• I am sure this issue is with the extension itself and does not reproduce in a standalone PowerShell instance.
• I have verified that I am using the latest version of Visual Studio Code and the PowerShell extension.
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Summary

Like the title says, semantic highlighting doesn't work for any new text you type, it only works for the text that was already there when you opened a file. Interestingly the VS code token inspect feature correctly lists the semantic color but the visuals aren't updated. Initially I assumed this was a bug in VS code itself but if I try it with the C# extension it works perfectly fine in VS code so they must be doing something different from this extension.
Here's a clip that demonstrates the issue:

PowerShell Version

Name Value
---- -----
PSVersion 7.5.0-preview.5
PSEdition Core
GitCommitId 7.5.0-preview.5
OS Microsoft Windows 10.0.19045
Platform Win32NT
PSCompatibleVersions {1.0, 2.0, 3.0, 4.0...}
PSRemotingProtocolVersion 2.3
SerializationVersion 1.1.0.1
WSManStackVersion 3.0
Name : Visual Studio Code Host
Version : 202450
InstanceId : 0de14edd-e7a3-4dcc-9ad1-f833dc86ffca
UI : System.Management.Automation.Internal.Host.InternalHostUserInterface
CurrentCulture : da-DK
CurrentUICulture : da-DK
PrivateData : Microsoft.PowerShell.ConsoleHost+ConsoleColorProxy
DebuggerEnabled : True
IsRunspacePushed : False
Runspace : System.Management.Automation.Runspaces.LocalRunspace

Visual Studio Code Version

1.96.0-insider
19fabc20e35c89915c772116503a079554166a3f
x64

Extension Version

ms-vscode.powershell@202450

Steps to Reproduce

Enable semantic highlighting with colors that don't match the colors from the textmate highlighting and start typing.

Visuals

No response

Logs

No response