"editor.occurrencesHighlight": "multiFile" breaks highlighting

[Vladimir Iashin]

vscode introduced editor.occurrencesHighlight setting in its latest update (version: 1.85.0 Commit: af28b32d7e553898b2a91af498b1fb666fdebe0c).

setting it to multiFile (singleFile is the default) breaks block highlighting in edamagit.

here is a video demonstrating the problem

multifile_occurence.mp4