How to keep code-folding on save in Visual studio code

Had the same issue and it turned out to be the sort-imports extension. Removing it fixed the issue.

Thank you for bringing up the extensions Mark. It was indeed an extension: lonefy.vscode-js-css-html-formatter.

Once this was disabled, the folding kept its state after saving.

For me it was the prettier plugin :(

Here is the closed issue: https://github.com/prettier/prettier-vscode/issues/408.

At the moment, there doesn't seem to be a fix.