is There any way to change default setting of beautify (VsCode Extension) configuration to indent innerHTML

If you want global settings for Beautify to persist across all you projects, you have to

1. Enable Beautify for all workspaces/projects ie globally (this is done by default)
2. You need to add the beautify settings to your settings.json file. Not the settings.json in your project folder. Global one

3. You need to create a beautify.config object in that json file.
4. Copy paste all you beautify settings into that object like so

{
    "beautify.config": {
       "js": {
        "allowed_file_extensions": ["js", "jsonc", "jshintrc", "jsbeautifyrc"],
        "brace_style": "collapse", // [collapse|expand|end-expand|none] Put braces on the same line as control statements (default), or put braces on own line (Allman / ANSI style), or just put end braces on own line, or attempt to keep them where they are
        "break_chained_methods": false, // Break chained method calls across subsequent lines
        "e4x": false, // Pass E4X xml literals through untouched
        "end_with_newline": false, // End output with newline
        "indent_char": " ", // Indentation character
        "indent_level": 0, // Initial indentation level
        "indent_size": 2, // Indentation size
        "indent_with_tabs": false, // Indent with tabs, overrides `indent_size` and `indent_char`
        "jslint_happy": false, // If true, then jslint-stricter mode is enforced
        "keep_array_indentation": false, // Preserve array indentation
        "keep_function_indentation": false, // Preserve function indentation
        "max_preserve_newlines": 0, // Maximum number of line breaks to be preserved in one chunk (0 disables)
        "preserve_newlines": true, // Whether existing line breaks should be preserved
        "space_after_anon_function": false, // Should the space before an anonymous function's parens be added, "function()" vs "function ()"
        "space_before_conditional": true, // Should the space before conditional statement be added, "if(true)" vs "if (true)"
        "space_in_empty_paren": false, // Add padding spaces within empty paren, "f()" vs "f( )"
        "space_in_paren": false, // Add padding spaces within paren, ie. f( a, b )
        "unescape_strings": false, // Should printable characters in strings encoded in \xNN notation be unescaped, "example" vs "\x65\x78\x61\x6d\x70\x6c\x65"
        "wrap_line_length": 0 // Lines should wrap at next opportunity after this number of characters (0 disables)
       },
    },
    "[javascript]": {
        "editor.defaultFormatter": "HookyQR.beautify"
    }
}

The last line tells VSCode to format JS with Beautify. You can add other languages to it and also your beautify.config.

Example