I used the beautify extension instead which worked right away while prettier was still putting on one line. Credit goes to kimanihuon on this stackoverflow page.
- Add the following to settings.json
"files.associations": { "**/*.html": "html", "**/templates/*/*.html": "django-html", "**/templates/*": "django-txt", "**/requirements{/**,*}.{txt,in}": "pip-requirements" }, "emmet.includeLanguages": { "django-html": "html" },
- Install beautify and then add following to settings.json
"beautify.language": { "html": [ "htm", "html", "django-html" ] },
- Restart VSCode just in case