vs code format not fixing indentation code example

Example: vscode fix indentation issues

If you open the "Show All Commands" tab, ( by pressing Ctrl+Shift+P or F1 ) 
and search for "convert indentation", two options will by available:

"convert indentation to tabs", and "convert indentation to spaces"

Just choose tabs if you use tabs or 
spaces if use spaces as your indentation method.
This should fix most indentation issues