Formatting a notebook results in having the last cell's code pasted into every cell. It also doesn't format the notebook. · Issue #16980 · microsoft/vscode-python · GitHub
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Right click on the first code cell and choose Format Notebook...
A lot of activity will occur (based on the progress bar spinning for a few seconds), but the only formatting that will have happened is that code from the last cell in the notebook will be pasted into the top of every cell.