Transcluded Mermaid diagrams get mangled if there is indentation

[tsbertalan-amgen]

Describe the bug

If I ![[transclude]] a document with a mermaid diagram, there seems to be so mangling of greater-than symbols to HTML entities that is connected to indentation in a way I can't quite parse. Is this documented somewhere, so I can know how to avoid it reliably? My solution right now is just not to use indentation in my Mermaid code fences, which is fine enough I guess. Feel free to close this if you think that's enough.

Small Reproducible Example

No response

Steps to Reproduce the Bug or Issue

File src.md:

This is the src.

Transclusion:

![[dst]]

File dst.md (using quad-backticks for this outer fence):

This works:
```mermaid
flowchart LR
A --> B
```

This also works:
```mermaid
flowchart LR
    A --> B
```

This does not:
```mermaid
flowchart LR

    A --> B
```

This is now garbled because the previous:
```mermaid
flowchart LR
A --> B
```

I get this preview for src.md:

Expected behavior

Transclusion should look like this:

Screenshots or Videos

No response

Operating System Version

Win 10 Enterprise

Visual Studio Code Version

Version: 1.82.2 (system setup) Commit: abd2f3db4bdb28f9e95536dfa84d8479f1eb312d Date: 2023-09-14T05:55:25.390Z Electron: 25.8.1 ElectronBuildId: 23779380 Chromium: 114.0.5735.289 Node.js: 18.15.0 V8: 11.4.183.29-electron.0 OS: Windows_NT x64 10.0.19045

Additional context

Some maybe relevant installed extensions:

• Foam
• Markdown All in One (Yu Zhang)
• Markdown Extended (jebbs, kbd plugin disabled)
• Markdown Preview Mermaid (Matt Bierner)
• markdownlint
• Prettier
• YAML (Red Hat)

I raised this here rather than with Mermaid Preview because the issue occurs only when transcluding dst, not when previewing dst directly (see "Expected behavior" screenshot).