Bhavin Gandhi <bhavin7...@gmail.com> writes:

> In the following Org mode file, the Ledger mode source block is not
> highlighted correctly.
>
> How to reproduce:
> ...

Confirmed.
Another example is
https://www.reddit.com/r/orgmode/comments/wi0jq9/highlight_doesnt_work_for_src_block_of_diff_with/

> PS: I haven't looked at the code of org-src-font-lock-fontify-block in
> detail, so I could be wrong with this analysis.

`org-src-font-lock-fontify-block' is indeed the culprit. It copies the
text between begin/end markers verbatim without adjusting the
indentation. The proper way would be using an approach similar to
`org-edit-src-code', but it may be tricky to map the fontification back
into the original block without a need to delete/re-insert the code into
Org buffer. Editing during fontification is a bad idea, so some kind of
smarter approach should be used in order to fix this.

P.S. I am genuinely surprised that this bug is only revealed now.

-- 
Ihor Radchenko,
Org mode contributor,
Learn more about Org mode at https://orgmode.org/.
Support Org development at https://liberapay.com/org-mode,
or support my work at https://liberapay.com/yantar92

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