[BUG] Format document command does not produce expected formatting of document

Expected behavior
Based on Code formatting section of the Extension details, the extension is expected to insert newlines in a simple one-line let statement.

Actual behavior
On Mac, with latest VSC and extension version, no formatting is applied as far as I can tell.
To Reproduce
Use query similar to docs, in a *.pq file:

let x = Foo(1,{2}) in x

Expect:

let
    x = Foo(1,{2})
in 
    x

Actually get:

let x = Foo(1, {2}) in x

Additional context
I suspected a clash of extension settings with other formatters, but could not diagnose one. I checked whether this extension is actually associated with *.pq files on my setup. This appears to be case as the language hints work as expected.

Snippet of workspace settings.json:

"[powerquery]": {

        "editor.defaultFormatter": "PowerQuery.vscode-powerquery"
    },

I partially verified the above is actually being propagated through by changing it temporarily to Prettier (esbenp.prettier-vscode)
and then re-attempting the format operation: this generated an error (as expected) from Prettier saying it was not able to format Power Query files. When I restored original setting continued to fail as described above.