Volar (vscode extension): line comment syntax in .vue files template section is wrong

I have enabled Volar, the Vscode extension (v0.34.15). I have disabled the Vetur extension. Now when commenting out code in the template part of a vue file, the comments have the wrong syntax:

{# <p>hello</p> #}

instead of

<!-- <p>hello</p> -->

With Vetur it works like expected, so I don't know if this is caused by some conflict with another extension or if it is some setting that needs to be changed?