Syntax highlighting broken for .vue files

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• I have read through docs
• I have read FAQ

Info

• Platform: macOS
• Vetur version: 0.16.1
• VS Code version: 1.31

Problem

I know longer have syntax highlighting for .vue files after updating to the latest VS code and vetur. I did not change any configuration. Theme does not effect this issue either, tried many. I also disabled all plugins but vetur and reloaded. Still does not work. There are no errors on the console. My .vue look like so:

My settings are:

{
  "window.zoomLevel": 0,
  "vscode_custom_css.imports": [
    "/Users/hendrixer/Dev/configs/vscode-theme/theme.css"
  ],
  "editor.fontFamily": "Operator Mono Ssm",
  "editor.tabSize": 2,
  "editor.cursorBlinking": "expand",
  "terminal.integrated.shellArgs.osx": ["-l"],
  "search.exclude": {
    "**/node_modules": false,
    "**/bower_components": true,
    "node_modules/**": true,
    "dist/**": true,
    "tmp/**": true,
    ".tmp/**": true,
    "**/.git": true,
    ".serverless/**": true,
    ".webpack/**": true
  },
  // "emmet.syntaxProfiles": { "javascript": "jsx" },
  "typescript.tsdk": "node_modules/typescript/lib",
  "files.exclude": {
    "**/.git": false,
    "**/.svn": true,
    "**/.hg": true,
    ".tmp/**": true,
    "**/.DS_Store": true
  },
  "files.insertFinalNewline": true,
  "vsicons.projectDetection.autoReload": true,
  "workbench.iconTheme": "material-icon-theme",
  "tsimporter.emitSemicolon": false,
  "git.enableSmartCommit": true,
  "vsicons.dontShowNewVersionMessage": true,
  "[javascriptreact]": {},
  "emmet.includeLanguages": {
    "javascript": "javascriptreact"
  },
  "eslint.validate": [
    "javascript",
    "javascriptreact",
    {
      "language": "vue",
      "autoFix": true
    },
    {
      "language": "vue-html",
      "autoFix": true
    }
  ],
  "workbench.colorTheme": "Material Theme Lighter High Contrast",
  "editor.fontSize": 16,
  "[javascript]": {
    "editor.formatOnSave": false
  },
  "[typescript]": {
    "editor.formatOnSave": false
  },
  "eslint.run": "onType",
  "eslint.autoFixOnSave": true,
  "vetur.format.defaultFormatter.js": "prettier",
  // relevant for 'prettier-eslint' instead of 'prettier'
  "prettier.eslintIntegration": true,
  "vetur.format.defaultFormatter.css": "prettier",
  "vetur.format.defaultFormatter.less": "prettier",
  "vetur.format.defaultFormatter.postcss": "prettier",
  "vetur.format.defaultFormatter.scss": "prettier",
  // at the time of this writing there is no stylus support by prettier
  "vetur.format.defaultFormatter.stylus": "stylus-supremacy",
  "vetur.format.defaultFormatter.ts": "prettier",
  "vetur.validation.style": true,
  "stylusSupremacy.insertColons": false,
  "stylusSupremacy.insertSemicolons": false,
  "stylusSupremacy.insertBraces": false,
  "stylusSupremacy.insertNewLineAroundImports": true,
  "stylusSupremacy.insertNewLineAroundBlocks": true,
  "stylusSupremacy.insertNewLineAroundProperties": false,
  "stylusSupremacy.insertNewLineAroundOthers": false,
  "stylusSupremacy.insertSpaceBeforeComment": true,
  "stylusSupremacy.insertSpaceAfterComment": true,
  "stylusSupremacy.insertSpaceAfterComma": true,
  "stylusSupremacy.insertSpaceInsideParenthesis": false,
  "stylusSupremacy.insertParenthesisAfterNegation": false,
  "stylusSupremacy.insertParenthesisAroundIfCondition": true,
  "stylusSupremacy.insertNewLineBeforeElse": false,
  "stylusSupremacy.insertLeadingZeroBeforeFraction": true,
  "stylusSupremacy.selectorSeparator": ", ",
  "stylusSupremacy.quoteChar": "'",
  "stylusSupremacy.sortProperties": false,
  "stylusSupremacy.alwaysUseImport": false,
  "stylusSupremacy.alwaysUseNot": false,
  "stylusSupremacy.alwaysUseAtBlock": false,
  "stylusSupremacy.alwaysUseExtends": false,
  "stylusSupremacy.alwaysUseNoneOverZero": false,
  "stylusSupremacy.alwaysUseZeroWithoutUnit": false,
  "stylusSupremacy.reduceMarginAndPaddingValues": false,
  "stylusSupremacy.ignoreFiles": [],
  "javascript.updateImportsOnFileMove.enabled": "always",
  "todo-tree.defaultHighlight": {
    "foreground": "green",
    "type": "none"
  },
  "bracketPairColorizer.forceUniqueOpeningColor": true,
  "bracketPairColorizer.colorMode": "Independent",
  "workbench.colorCustomizations": {
    "activityBarBadge.background": "#AB47BC",
    "list.activeSelectionForeground": "#AB47BC",
    "list.inactiveSelectionForeground": "#AB47BC",
    "list.highlightForeground": "#AB47BC",
    "scrollbarSlider.activeBackground": "#AB47BC50",
    "editorSuggestWidget.highlightForeground": "#AB47BC",
    "textLink.foreground": "#AB47BC",
    "progressBar.background": "#AB47BC",
    "pickerGroup.foreground": "#AB47BC",
    "tab.activeBorder": "#AB47BC",
    "notificationLink.foreground": "#AB47BC",
    "editorWidget.resizeBorder": "#AB47BC",
    "editorWidget.border": "#AB47BC",
    "settings.modifiedItemIndicator": "#AB47BC",
    "settings.headerForeground": "#AB47BC",
    "panelTitle.activeBorder": "#AB47BC",
    "breadcrumb.activeSelectionForeground": "#AB47BC",
    "menu.selectionForeground": "#AB47BC",
    "menubar.selectionForeground": "#AB47BC"
  },
  "materialTheme.autoApplyIcons": true,
  "typescript.preferences.quoteStyle": "single",
  "tslint.autoFixOnSave": true,
  "tslint.packageManager": "yarn",
  "prettier.tslintIntegration": true,
  "javascript.format.enable": false,
  "editor.formatOnSave": false,
  "workbench.panel.defaultLocation": "bottom",
  "prettier.semi": false,
  "prettier.singleQuote": true,
  "tslint.run": "onType",
  "files.trimFinalNewlines": true,
  "materialTheme.accent": "Purple",
  "terminal.integrated.rendererType": "dom",
  "files.associations": {
    "*.vue": "vue"
  }
}

Reproducible Case

1. update to the lates vs code
2. updated to the lates vetur
3. open a .vue file
4. observe

[vilunet]

Its again broken in latest VS code and Vetur

[Hendrixer]

after reinstalling vetur a few times, issue has resolved itself.