that would have been my first guess also - but the extension is up-to-date (even reinstalled it) … well I guess I have to keep looking
Ok I think I found it - the selection VS.code gives you will write an entry into "[purescript]"."editor.defaultFormatter" and this selection does not include purs-tidy for me and it’ll not accept it.
I did not read the readme carefully enough and thought I’d supposed to change this - but indeed what I needed to do was remove this entry and add a global entry with "purescript.formatter": "purs-tidy" - now it works like a charm.
Thanks for the help and thanks @natefaubion for this great piece of purescript 
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