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If you separate your code into components and install the following plugin It will give you IntelliSense and syntax highlighting for Vue.
See an example here β> https://codesandbox.io/s/o29j95wx9
Good example of it here from the Vue docs β> https://v2.vuejs.org/v2/guide/single-file-components.html
I think VS code has to see it separated out into blocks below for it to properly do syntax highlighting otherwise itβll just detect what you have declared in the template as strings.
<template></template>
<script></script>
<style></style>
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Source:stackexchange.com