VS Code region/block comment folding

I’m giving VS Code a try and am trying to figure out why block folding for comments and regions is not working. I figured out they do fold only if all the contents between and #region #endregion is indented. To comment out a block of code or region I had to [Alt]+[SHIFT] the selection and insert a tab or a few spaces to indent all lines from the leading and trailing block. Is there a specific setting I’m missing?

If I should not ask this here, my apologizes.

VS Code 1.13.1 and PowerShell extension 1.4.1

Not collapsible


#region test
Write-Output Hello World
#endregion

Collapsible


#region test
    Write-Output Hello World
#endregion

You need at least 1 space for the region to collapse.

#region test
 Write-Output Hello World
#end region