• VSCode Version: 1.16.0
• OS Version: Window10

Steps to Reproduce:

1. open your VS Code.
2. new a CSS file.
3. paste this to you file

.wrap {
  display: inline-block;
  width: 300px;
  height: 300px;
  margin: 20px;
  background: repeating-linear-gradient(45deg, red, red 10px, orange 10px,orange 20px);
}

4. Put your cursor over here orange

Reproduces without extensions: Yes