Here is my formatting settings:

{
"[php]": {
        "editor.defaultFormatter": "DEVSENSE.phptools-vscode"
    },
    "phpTools.language": "en",
    "php.format.codeStyle": "Laravel",
    "php.inlayHints.types.return": false,
    "php.inlayHints.parameters.enabled": false,
    "php.completion.parameters": "parentheses",
    "php.format.rules.keepControlStatementsOnOneLine": true,
    "php.format.rules.spaceAfterCast": true,
    "php.format.rules.alignConsecutiveAssignments": false,
    "php.format.rules.spaceWithinArrayInitilizersParens": false,
    "php.format.rules.arrayInitializersNewLineAfterLastElement": true,
    "php.format.rules.arrayInitializersNewLineBeforeFirstElement": true,
    "php.format.rules.groupUseNewLineBeforeFirstDeclaration": false,
    "php.format.rules.switchStatementNewLineAfterLeftParen": true,
    "php.format.rules.callParametersNewLineBeforeRightParen": true,
    "php.format.rules.callParametersNewLineAfterLeftParen": true,
    "php.format.rules.whileStatementNewLineAfterLeftParen": true,
    "php.format.rules.ifStatementNewLineBeforeRightParen": true,
    "php.format.rules.openBraceOnNewLineForFunctions": true,
    "php.format.rules.ifStatementNewLineAfterLeftParen": true,
    "php.format.rules.openBraceOnNewLineForBlocks": false,
    "php.format.rules.declParametersNewLineAfterLeftParen": true,
    "php.format.rules.whileStatementNewLineBeforeRightParen": true,
    "php.format.rules.endWithNewLine": false,
    "php.format.rules.chainedMethodCallsSemicolonOnNewLine": false,
    "php.format.rules.declParametersWrap": "onEveryItem",
    "php.format.rules.spaceAroundConcatenation": true,
    "php.format.rules.spaceBeforeColonInReturnType": false,
    "php.format.rules.spaceAfterUnaryNot": false,
    "php.format.rules.removeReduntandClosingTag": true,
    "php.format.rules.addCommaAfterLastDeclParameter": false,
    "php.format.rules.addCommaAfterLastArrayElement": true,
    "php.format.rules.arrayInitializersWrap": "onEveryItem",
    "php.format.rules.spaceWithinBrackets": false,
    "php.format.rules.spaceWithinForParens": true,
    "php.format.rules.callParametersWrap": "onEveryItem",
    "php.format.rules.addCommaAfterLastCallParameter": false,
    "php.format.rules.alignConstants": false,
    "php.format.rules.alignEnumCases": true,
    "php.format.rules.alignMatchArmBodies": false,
    "php.format.rules.chainedMethodCallsWrap": "always",
    "php.format.rules.arrayInitializersAlignKeyValuePairs": false,
    "php.completion.showParameters": true,
    "php.format.rules.declCompactEmptyBody": false,
    "php.format.rules.spaceBeforeParenthesesInControlStatements": true,
    "php.format.rules.declKeepRightParenAndOpenBraceOnOneLine": true,
    "php.format.rules.forStatementNewLineBeforeRightParen": true,
    "php.format.rules.switchStatementNewLineBeforeRightParen": true,
    "php.hover.parametersFullName": true,
    "php.completion.showDeprecated": "showStrikethrough",
    "php.problems.excludeGitIgnore": true,
    "php.format.rules.indentBraces": false,
    "php.codeLens.enabled": false,
    "php.format.rules.declParametersNewLineBeforeRightParen": false,
    }

I observed that the issue shows up when the parameters has multiple lines. Here is the example file:

<?php

namespace App\Http\Controllers;

use Illuminate\Support\Carbon;

class Test
{
    public function set($key, $value, $options)
    {
        return $this;
    }

    public function bar()
    {
        return $this;
    }

    public function foo()
    {
        $date = Carbon::now();

        // Here it is not working.
        $this->set(
            $date->copy()
                ->endOfDay()
            ,
            $date->copy()
                ->startOfDay()
            ,
            ['timezone' => 'UTC']
        )
            ->bar();
    }

    public function zoo()
    {
        $date = Carbon::now();

        // Here it is working.
        $this->set(
            $date->copy(),
            $date->copy(),
            ['timezone' => 'UTC']
        )
            ->bar();
    }

    public function baz()
    {
        // Here it is working fine.
        $this->set(
            'parameters',
            'value',
            ['option' => 'value']
        )
            ->bar();
    }
}