It's not just that, I've never seen any other HTML language server produce diagnostics at all. All the major editors use the VSCode stock HTML language server and that thing just doesn't produce any diagnostic at all.
Huh. Wow. I don’t normally use VSCode, and you are correct. JetBrain IDEs correctly report some nonsense like <p><div><img></ul>test</p> as an error, but VSCode does nothing. That’s really weird.