YAML file formatting in VSCODE

I fixed this by changing editor.autoIndent settings for yaml and dockercompose language

Update: In VsCode, press ctrl+shift+p (cmd+shift+p in Mac), and search for Preferences: Open User Settings (JSON) to add the following configuration:

"[yaml]": {
  "editor.autoIndent": "advanced"
},
"[dockercompose]": {
  "editor.autoIndent": "advanced"
}