[vscode] math blocks highlightetd as executable cells, but delimiting logic is broken

When I use the Quarto vscode extension it causes math blocks have a grey background colour. However the logic used to identify math blocks seems a bit broken.

In the following example the grey background stretches all the way from the 2nd to the 3rd equation, i.e. the extension is failing to recognize the $$ which ends the second display-math block:

This is not consistent with any other markdown/latex interpreter I know of. Weirdly the same highlighting also gets applied to my files which are markdown (.md), as well as my Quarto files (.qmd).

Minimal working example, which produces the highlighting shown above:

$$x^2$$

$$x^2
   y^2$$

$$x^2$$

Reproduce the minimal example in the Quarto VS Code extension using both .md and .qmd files, then inspect the extension's math-block delimiting and syntax-highlighting entry points. Done means each $$...$$ block receives its own grey background, including the multiline block, without highlighting the text between blocks.