is stripped from templates

[jasonhibbs]

I believe some combination of Typescript and Pug means  s are stripped from template blocks.

Test

Create fresh project from Vue CLI with basic settings:

Vue CLI v4.4.6
? Please pick a preset: Manually select features
? Check the features needed for your project: Babel, TS, Linter
? Use class-style component syntax? Yes
? Use Babel alongside TypeScript (required for modern mode, auto-detected polyfills, transpiling JSX)? Yes
? Pick a linter / formatter config: Basic
? Pick additional lint features: Lint on save
? Where do you prefer placing config for Babel, ESLint, etc.? In dedicated config files
? Save this as a preset for future projects? No

Add vue-cli-plugin-pug:

vue add pug

Replace HelloWord.vue template with:

<template lang="pug">
  .hello
    p This&nbsp;should&nbsp;never&nbsp;break.&nbsp;This&nbsp;should&nbsp;never&nbsp;break.&nbsp;This&nbsp;should&nbsp;never&nbsp;break.&nbsp;
</template>

When inspected,  s are not present. Is this to do with Babel and JSX as mentioned here?

[jasonhibbs]

Reproduced without Pug and without Typescript, new issue opened at vue-cli.