Shift to left when I enter {} in JSX code - VSCode

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I'm seeing this super annoying behavior for quite a while now. When I enter {} in JSX (React code) the line I'm writing on shifts either to the left or right. The behavior happens when I close curly braces. Here are two screenshots. The difference is the insertion of the closing }.

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Closing

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I'm not really sure how to find the setting causing this. I've tried deleting some extensions and tried to find. Does someone know how to disable this?

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