SQL Developer for VS Code

The formatter (extension version 24.4.1) is doing something very odd. I get each word in a different row, like instead of space we have a new line each time. COuld you please help?

I have a code which I'd would like to have in something like this:

with
   t_mt as (
      select
         part_no mt_partno,
         case
            when part_no like '_B-___-61%' then 'VERP'
            when part_no in ('EA-SZILCSO', ‘EA-FECSKENDO-10-ML’) then 'ROH'
            when part_no like 'LK-%'
            or part_no like 'CVK-%'
            or part_no like 'IK-PILM%'

Instead after formatting, I get this:

with t_mt
as (
   select
   part_no
   mt_partno
   ,
          case
             when
             part_no
             like
             '_B-___-61%'
             then
                'VERP'
             when
             part_no
             in
             (
             'EA-SZILCSO'
             ,
                  'EA-FECSKENDO-10-ML'
                  ,
                  'EA-FECSKENDO-50-ML'
                  )
                  then
                'ROH'