Fix auto-indentation issues and remove formatOnType functionality

[DonJayamanne]

Fixes #1461
Fixes #1586

This pull request:

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• Includes a news entry file (remember to thank yourself!)

[codecov]

Codecov Report

Merging #1750 into master will decrease coverage by 0.1%.
The diff coverage is n/a.

@@            Coverage Diff             @@
##           master    #1750      +/-   ##
==========================================
- Coverage   73.76%   73.66%   -0.11%     
==========================================
  Files         279      275       -4     
  Lines       13049    12950      -99     
  Branches     2329     2317      -12     
==========================================
- Hits         9626     9539      -87     
+ Misses       3287     3278       -9     
+ Partials      136      133       -3

Impacted Files	Coverage Δ
src/client/extension.ts	96.06% <ø> (-0.13%)	⬇️
...rc/client/debugger/PythonProcessCallbackHandler.ts	53.61% <0%> (-0.66%)	⬇️
src/client/debugger/PythonProcess.ts	51.25% <0%> (+3.33%)	⬆️

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