I am currently using GitHub Copilot within VS Code, primarily to write my thesis in LaTeX, but I've noticed my issue is not limited to .tex files.

Everything was working perfectly until yesterday, but I am now encountering a frustrating formatting issue specifically with inline suggestions (the ghost text that appears as I type).

Instead of suggesting structured code blocks, Copilot now generates everything on a single line. It no longer respects standard formatting conventions, such as:

• Line breaks for new environments (e.g., after \begin{itemize} or \begin{equation}).

• Proper indentation for nested content.

• Basic vertical spacing that makes the source code readable.

To be clear, this isn't about the Chat interface; it's the automatic ghost text completions that are suddenly "minified" into a single line.

My Windows 11 system just performed an update; while I am not sure how it would be linked to the extension's behavior, the timing is a notable coincidence. Moreover, I have not changed any VS Code settings or extensions manually, and the problem persists across different file types (.tex, .py, etc.).

Has anyone else noticed a sudden shift to single-line suggestions recently? Is there a specific setting to force Copilot to respect line breaks and standard formatting again?