Editor highlights individual letters instead of semantic symbols

Does this issue occur when all extensions are disabled?: Yes/No

VS Code Version: 1.136.2
OS Version: Sonoma 14.0 (23A344)

When selecting any character in the editor, it highlights that character globally across the entire file, treating it as a plain text search rather than semantic symbol highlighting. This creates visual noise, making it difficult to focus on actual code logic and distinguish between real symbol references and random character matches.

https://github.com/user-attachments/assets/c620ce2c-f61e-46c7-8e6b-05d60a19730f