Look at this markdown below:
```a`a```
This markdown text should be converted like below HTML
<code>a`a</code>
a`a
markdown-it recognize this correctly.

However, vscode-markdown recognize like below:
``<code>a</code>`a```
As a result, in editor view, decoration rectangle drawing result is strange.

"markdown.extension.syntax.decorations": true```a`a```
ref:
Thank you for the report. Looks a bit hard to handle...
It should be fixed in the dev build.
@yzhang-gh I install build 1.0.29, then, work fine!
BTW, Another pattern cause bug found...
`a
a`
This should be recognize like <code>a a</code>.

You are right. However vscode decorations cannot cover multi-lines. So this is the best we can do now.
vscode decorations cannot cover multi-lines.
I'm not sure about vscode decorations. However, as far as I see, Bracket Pair Colorizer do it (bracketPairColorizer.showVerticalScopeLine, I don't know Bracket Pair Colorizer really use vscode decorations system to draw)

How do you think about code tag syntax in code block syntax?
```
aaa
`a`
a
`````
```a```

The multi-line thing
This is the upstream issue. _Bracket Pair Colorizer_ might have used some tricks (technically, we can fake multi-line decoration with multiple single-line decorations 😂). However, I am not a fan of this.
Decorations inside code blocks
Interesting. It is doable to disable decorations there. I can look into it this weekend.
I have disabled decorations in the fenced code blocks. However, I didn't touch the indented code blocks. There are many corner cases if we want to perfectly determine the indented code blocks. I don't think it is worth that effort.
Thank you for your fix!