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Found this: https://github.com/formulahendry/vscode-auto-close-tag/issues/65 give it a try.
for the sake of my finger I prefer to use Slim: https://github.com/slim-template/slim-rails
I have given up on hope and installed that extension. There seems to be a PR at the moment for VS Code that may address this issue (I didn't spend any time reading the background or solution, so it may or may not be related).
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.