using @apply break the extension

[NeoLaner]

What version of VS Code are you using?

1.104

What version of Tailwind CSS IntelliSense are you using?

0.14.26

What version of Tailwind CSS are you using?

^4.0.8

What package manager are you using?

pnpm

What operating system are you using?

Windows 10

Tailwind CSS Stylesheet (v4) or config file (v3)

@source "../components/**/*.{ts,tsx}";

@import "tailwindcss";
@import "tw-animate-css";
@plugin "tailwindcss-motion";

@layer base {
  * {
    @apply border-border outline-ring/50;
  }
  body {
    @apply bg-background text-foreground;
  }
}

@theme {
  --breakpoint-xs: 23rem;
}

VS Code settings

{
  "workbench.sideBar.location": "right",
  "editor.fontSize": 17,
  "editor.fontFamily": "JetBrains Mono",
  "[typescript]": {
    "editor.defaultFormatter": "esbenp.prettier-vscode"
  },
  "workbench.iconTheme": "material-icon-theme",
  "workbench.colorTheme": "GitHub Dark",
  "terminal.integrated.fontFamily": "FiraCode Nerd Font Mono",
  "[typescriptreact]": {
    "editor.defaultFormatter": "esbenp.prettier-vscode"
  },
  "github.copilot.editor.enableAutoCompletions": false,
  "[css]": {
    "editor.defaultFormatter": "esbenp.prettier-vscode"
  },
  "[javascript]": {
    "editor.defaultFormatter": "esbenp.prettier-vscode"
  },
  "[json]": {
    "editor.defaultFormatter": "esbenp.prettier-vscode"
  },
  "git.autofetch": true,
  "explorer.confirmDelete": false,
  "[jsonc]": {
    "editor.defaultFormatter": "esbenp.prettier-vscode"
  },
  "typescript.updateImportsOnFileMove.enabled": "always",
  "typescript.preferences.importModuleSpecifierEnding": "minimal",
  "database-client.autoSync": true,
  "javascript.preferences.organizeImports": {
    "source.organizeImports": "always",
    "source.fixAll": "explicit"
  },
  "typescript.preferences.organizeImports": {
    "source.organizeImports": "always",
    "source.fixAll": "explicit"
  },

  // ---------
  "typescript.preferences.preferTypeOnlyAutoImports": true,

  "editor.inlayHints.fontFamily": "JetBrainsMono NF",
  "editor.inlayHints.fontSize": 1,
  "editor.inlayHints.padding": true,
  "javascript.inlayHints.functionLikeReturnTypes.enabled": true,
  // You can set this to 'all' or 'literals' to enable more hints, default is none
  "javascript.inlayHints.parameterNames.enabled": "literals",
  "typescript.inlayHints.enumMemberValues.enabled": true,
  "typescript.inlayHints.functionLikeReturnTypes.enabled": false,
  // You can set this to 'all' or 'literals' to enable more hints, default is none
  "typescript.inlayHints.parameterNames.enabled": "all",
  "github.copilot.enable": {
    "*": false,
    "plaintext": false,
    "markdown": false,
    "scminput": false
  },
  "cSpell.userWords": ["Reentrancy", "viem", "wagmi"],
  "editor.codeActionsOnSave": {
    "source.addMissingImports": "always"
  },
  "files.autoSave": "onWindowChange"
  // ---------
}

Reproduction URL

https://github.com/NeoLaner/tw-ex-bug

Describe your issue

using @apply break the extension, most of the times it's stuck forever in building...
but sometimes show an error in output:

the output log
[src\styles\globals.css] Building...
[Global] Adding watch patterns: C:\00-Project\bugs\ui\node_modules.pnpm\tw-animate-css@1.3.8\node_modules\tw-animate-css\dist\tw-animate.css, C:\00-Project\bugs\ui\node_modules.pnpm\tailwindcss@4.1.13\node_modules\tailwindcss\index.css, C:\00-Project\bugs\ui\node_modules.pnpm\tailwindcss-motion@1.1.1_tailwindcss@4.1.13\node_modules\tailwindcss-motion\dist\index.js
[Global] Initialized 1 projects
---- RELOADING DESIGN SYSTEM ----
---- C:/00-Project/bugs/ui/src/styles/globals.css ----
[Error - 10:55:41 AM] Error: Cannot apply unknown utility class border-border
at onInvalidCandidate (file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:18:1529)
at pe (file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:13:29888)
at file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:18:373
at D (file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:3:1656)
at Oe (file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:18:172)
at ti (file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:35:780)
at process.processTicksAndRejections (node:internal/process/task_queues:105:5)
at async Module.Va (file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:35:2069)
at async lF (c:\Users\Ylaner-10.vscode\extensions\bradlc.vscode-tailwindcss-0.14.26\dist\tailwindServer.js:3549:1643)
at async Object.reload (c:\Users\Ylaner-10.vscode\extensions\bradlc.vscode-tailwindcss-0.14.26\dist\tailwindServer.js:3551:834)
---- RELOADING DESIGN SYSTEM ----
---- C:/00-Project/bugs/ui/src/styles/globals.css ----
[Error - 10:55:58 AM] Error: Cannot apply unknown utility class border-border
at onInvalidCandidate (file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:18:1529)
at pe (file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:13:29888)
at file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:18:373
at D (file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:3:1656)
at Oe (file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:18:172)
at ti (file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:35:780)
at process.processTicksAndRejections (node:internal/process/task_queues:105:5)
at async Module.Va (file:///C:/00-Project/bugs/ui/node_modules/.pnpm/tailwindcss@4.1.13/node_modules/tailwindcss/dist/chunk-U5SIPDGO.mjs:35:2069)
at async lF (c:\Users\Ylaner-10.vscode\extensions\bradlc.vscode-tailwindcss-0.14.26\dist\tailwindServer.js:3549:1643)
at async Object.reload (c:\Users\Ylaner-10.vscode\extensions\bradlc.vscode-tailwindcss-0.14.26\dist\tailwindServer.js:3551:834)

removing these lines makes the extension works but ruin my border styles. so it means it's actually works with tailwind itself but not with extension

@layer base {
  * {
    @apply border-border outline-ring/50;
  }
  body {
    @apply bg-background text-foreground;
  }
}

[NeoLaner]

In my other projects which the extension wokrs i found at some classess not showing up in autocomplete like gap-n or flex-grow and etc..
i go back to 0.14.25 now it seems everything works as expected even that issue with @apply