Don't include trailing empty lines at end of code folding

src/vs/editor/common/model/indentRanges.ts

@@ -38,12 +38,13 @@ export function computeRanges(model: ITextModel, minimumRangeSize: number = 1):
 
 	for (let line = model.getLineCount(); line > 0; line--) {
 		let indent = model.getIndentLevel(line);
+		let previous = previousRegions[previousRegions.length - 1];
 		if (indent === -1) {
+			// exclude empty lines from end of fold
+			previous.line = line;
 			continue; // only whitespace
 		}
 
-		let previous = previousRegions[previousRegions.length - 1];
-
 		if (previous.indent > indent) {
 			// discard all regions with larger indent
 			do {

src/vs/editor/test/common/model/indentRanges.test.ts

@@ -99,7 +99,7 @@ suite('Indentation Folding', () => {
 		/* 6*/	'  }',
 		/* 7*/	'      ',
 		/* 8*/	'}',
-		], [r(1, 7, 0), r(3, 5, 2)]);
+		], [r(1, 6, 0), r(3, 5, 2)]);
 	});
 
 	test('Fold Tabs', () => {
@@ -112,6 +112,6 @@ suite('Indentation Folding', () => {
 		/* 6*/	'  \t}',
 		/* 7*/	'      ',
 		/* 8*/	'}',
-		], [r(1, 7, 0), r(3, 5, 4)]);
+		], [r(1, 6, 0), r(3, 5, 4)]);
 	});
 });

src/vs/editor/test/common/model/textModel.test.ts

@@ -914,7 +914,7 @@ suite('TextModel.getLineIndentGuide', () => {
 			[1, '     '],
 			[1, '     return 1;'],
 			[1, '  }'],
-			[1, '      '],
+			[0, '      '],
 			[0, '}'],
 		]);
 	});
@@ -927,7 +927,7 @@ suite('TextModel.getLineIndentGuide', () => {
 			[2, '\t \t//hello'],
 			[2, '\t    return 2;'],
 			[1, '  \t}'],
-			[1, '      '],
+			[0, '      '],
 			[0, '}'],
 		]);
 	});