opening a lightning component since last Thursday, none of the the non-html tags are highlighted anymore
syntax highlighting on LC.cmp
no highlitghting
VS Code Version: 1.26.1
SFDX CLI Version: sfdx-cli/6.29.0-0a2482692c (darwin-x64) node-v8.9.4
OS and version: macos 10.13.6
Internal Work Numer: W-5421880
@mshanemc - Did you mean to include a _different_ screenshot?

yep, sorry about that.
@mshanemc As a workaround, add the following snippet to your user settings in VS Code. That fixes the highlighting issue.
"files.associations": { "*.cmp": "visualforce" }
I am seeing a similar result, the tags show up red for me, which I believe is because they are undefined.

In HTML the tags show up blue and invalid tags show up red.

It looks Microsoft updated the grammar for HTML to be much more specific - it now lists valid HTML elements and attributes. Thus breaking our use of it. https://github.com/Microsoft/vscode/commit/404e737560657bf3936b204c64d313abdba3d2e3
To fix this we will need to create our own grammar.
<namespace:tagname> could cause a spike if the entire line is now errorneous.... 馃@ntotten The fix suggested to force the file association of *.cmp to "visualforce" has worked for me and gotten rid of the red https://github.com/forcedotcom/salesforcedx-vscode/issues/573#issuecomment-416990920
@lcampos This might be a good short term fix ^. The visualforce language is using an older version of the HTML grammar & language server from before it was broken for foo:baz elements.
I don't know if VSCode has gotten better at letting you "extend" grammar and languages.
Last time I tried it was not possible so you had to re-do everything which was a pain especially for adding stuff to let's say HTML.
Yeah, it is unfortunately not possible for the HTML language. We had to fork the HTML language server for Visualforce. We will likely have to do the same for aura to fix this problem.
@ntotten unfortunately that short fix ("files.associations": { "*.cmp": "visualforce" }) results in losing autocompletion and other language server capabilities.
@lcampos I was merely suggesting that as a "workaround" rather than an actual fix.
I was not aware it would break things, too.
Thanks for the update.
Will go out in the release this Thursday.
Most helpful comment
Yeah, it is unfortunately not possible for the HTML language. We had to fork the HTML language server for Visualforce. We will likely have to do the same for aura to fix this problem.
Reference: https://github.com/Microsoft/vscode/issues/2784