Environment data

VS Code version: Version: 1.81.1 (user setup)
C# Extension version: v2.0.436

Steps to reproduce

1. Create a new .cs file with the following code:

long foo = new Random().Next(1,10);
if (foo == 1) {
	Console.WriteLine("Foo is totally one");
} else {
	Console.WriteLine("Foo is absolutely not one").
}

Note: The bracket style is important.

2. Fold the if statement.

Expected behavior

Line 3, with the "Foo is totally one" writeline gets folded in and hidden, while preserving the } else { to make it clear when the still visible line 5 is executed.

Actual behavior

The code fold is really misleading if one does not notice that the fold is active:

Before:

After:

Additional context

I know that the bracketing style in this example is not the recommended style. But there is no reason for the folding to behave like this. :)

I also tried the same scenario in JavaScript in VS Code and the misleading fold does not happen there.