For the last week or so, every .VUE file I work with has no syntax highlighting. I usually have the extension Vetur to help with synthax highlighting and other tweaks to .VUE files.
Things I've tried so far:
![][1]](https://i.stack.imgur.com/QcLwy.png)
You can install 'Vue 3 Support - All In One' from extensions in vs code. Then the issue with syntax highlighting will fix.
As i see for lang="pug" there is no needs to use other extension as like below:
https://vuejs.github.io/vetur/highlighting.html#custom-block
So I think the problem may be on your project file, please check new vue project to be sure that the problem is not from your files and config of the project !
As Sebastian Brosch said in a reply
This worked for me: https://github.com/vuejs/vetur/blob/master/docs/FAQ.md#no-syntax-highlighting--no-language-features-working
TLDR: Run command reinstall command in vscode and select vetur extension
