I use the Spring Boot Tools Extension for VS Code. Between versions 1.53.0 and 1.54.0 local variable lose syntax highlighting when they are referenced.

Highlighting is fine when variable is initially defined but when later referenced or assigned, highlighting is lost. All things the same, v1.53.0 works fine.

This is on a clean install of VS Code with only the Java Extension Pack and Spring Boot Extension Pack installed.

V1.53.0

V1.54.0