Vue Template formatting, IntelliSense and typescript error reporting is not working properly. Was working perfectly fine few days ago

Vue - Official extension or vue-tsc version

v2.1.6

VSCode version

v1.93.1

Vue version

v3.5.10

TypeScript version

v5.6.2

System Info

System:
    OS: macOS 15.0
    CPU: (12) arm64 Apple M3 Pro
    Memory: 73.44 MB / 18.00 GB
    Shell: 5.9 - /bin/zsh
  Binaries:
    Node: 20.10.0 - ~/.nvm/versions/node/v20.10.0/bin/node
    Yarn: 1.22.22 - ~/.yarn/bin/yarn
    npm: 10.8.3 - ~/.nvm/versions/node/v20.10.0/bin/npm
    bun: 1.1.4 - ~/.bun/bin/bun
  Browsers:
    Edge: 129.0.2792.65
    Safari: 18.0

package.json dependencies

{
  "dependencies": {
    "@nuxt/image": "^1.8.0",
    "@nuxt/ui": "^2.18.6",
    "@pinia/nuxt": "^0.5.4",
    "luxon": "^3.5.0",
    "nuxt": "^3.13.2",
    "vue": "^3.5.9"
  },
  "devDependencies": {
    "@iconify-json/tabler": "^1.2.3",
    "@nuxt/test-utils": "^3.14.2",
    "@types/luxon": "^3.4.2",
    "@vue/test-utils": "^2.4.6",
    "happy-dom": "^15.7.4",
    "playwright-core": "^1.47.2",
    "typescript": "^5.6.2",
    "vitest": "^2.1.1"
  }
}

Steps to reproduce

I am working on a Nuxt 3 Project. It is happening all the time. In the past, it was working perfectly fine. I never touched any configuration so it is possible it happened after the extension update.

What is expected?

Like before it should work fast, Formating vue templates, and Auto Imports of types and components which was working perfectly fine earlier.

What is actually happening?

Currently, it is taking a lot of time to format the documents sometimes do not format the document, auto import, and ctrl+. suggestions not working if working taking a lot of time. If there is a typescript error and when I fix it it still shows the red squiggly lines if I reload the VS Code window then it disappears.

Link to minimal reproduction

No response

Any additional comments?

I also use PHP Storm and there the LSP keeps terminating due to the memory exceed. here is the ticket link: https://youtrack.jetbrains.com/issue/WEB-69499

vuejs / language-tools