• VSCode Version: 1.32.1
• OS Version: Win7 x64

Steps to Reproduce:

1. Set in editor settings:
   "editor.folding": true, "editor.foldingStrategy": "indentation"

2. Open the attached file and go to line 43914 where folding stopped working.

test_ident.zip

3. Delete couple of blocks of code - folding starts working again.

Developer of folding extension "Explicit Folding" pointed out to me that there is a hard limit of 5000 foldings per file. If it is so than I guess this is not a bug report but a feature request for editor setting in order to increase this limit. In my case, folding stopped working in file with about 35000 lines - which is not that many.

Does this issue occur when all extensions are disabled?: Yes