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

• VS Code Version: 1.95.3
• OS Version: Windows 10

Steps to Reproduce:

Create PHP file with the following contents:

<?php

$q1 = "   SELECT * FROM table";

$q2 = "
    SELECT *
    FROM table
";

Note that $q1 gets correctly syntax-highlighted as SQL despite leading whitespace, but $q2 (much cleaner layout for larger queries imo) is treated as a regular string.