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    The problem is not the newlines, the issue is with the nested braces. After spacing}* the highlighter thinks that it is no longer inside an argument and starts outer-level (i.e., orange) highlighting. Compare \foo{\bar} \foo{{}\bar}. For another clear example see tex.stackexchange.com/questions/564420/….
    – Marijn
    Commented Sep 28, 2020 at 20:14