I tried to add !encrypted/pkcs1-oaep to yaml.customTags to make it ignore it but apparently this feature does not work.
This has proven to be caused by Ansible extension by Microsoft and they already have an year old bug about messing other YAML extensions: https://github.com/VSChina/vscode-ansible/issues/230
Lets not close this bug because it seriously affecting YAML extension and we do not have a way to avoid it other then disabling the culprit extension.
Related: https://github.com/redhat-developer/vscode-yaml/issues/265
I can confirm this. Install Ansible vscode plugin - everything breaks in regards to custom tags. Uninstall Ansible vscode plugin. custom tags works np again.
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I can confirm this. Install Ansible vscode plugin - everything breaks in regards to custom tags. Uninstall Ansible vscode plugin. custom tags works np again.