Incorrect code generated when formatting valid code using fewer braces syntax

[odd]

Configuration

version = 3.7.0
runner.dialect = scala3

Command-line parameters (required)

When I run scalafmt via CLI like this: scalafmt --stdin

Steps

Given code like this:

def sum(xs: List[Int]): Int =
  xs.foldLeft(0):
    case (a, b) => a + b

Problem

Scalafmt formats code like this:

def sum(xs: List[Int]): Int =
  xs.foldLeft(0):
  case (a, b) => a + b

Expectation

I would like the formatted output to look like this:

def sum(xs: List[Int]): Int =
  xs.foldLeft(0):
    case (a, b) => a + b

Workaround

Use braces instead of indentation for the last parameter to foldLeft:

def sum(xs: List[Int]): Int =
  xs.foldLeft(0) {
    case (a, b) => a + b
  }

Notes

Only fails on Scala 3.3 onwards (I used 3.3.0-RC1-bin-20230118-9337bd6-NIGHTLY) since the original syntax is only valid with the Fewer Braces-feature (which has been merged into Scala 3.3)