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You might want to look into Dart-Code how these closing labels are generated and then create another VSCode plugin to create your kind of code decoration. I had a 1min glance at the plugin source code and I think, this API is responsible to creating such decorations.
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SurveyJS
Open-Source JSON Form Builder to Create Dynamic Forms Right in Your App. With SurveyJS form UI libraries, you can build and style forms in a fully-integrated drag & drop form builder, render them in your JS app, and store form submission data in any backend, inc. PHP, ASP.NET Core, and Node.js.
NOTE:
The number of mentions on this list indicates mentions on common posts plus user suggested alternatives.
Hence, a higher number means a more popular project.