diff --git a/packages/compose-language-service/bin/docker-compose-langserver b/packages/compose-language-service/bin/docker-compose-langserver
old mode 100644
new mode 100755
diff --git a/packages/compose-language-service/src/test/providers/DocumentFormattingProvider.test.ts b/packages/compose-language-service/src/test/providers/DocumentFormattingProvider.test.ts
index fc31fea1..6d7f2d10 100644
--- a/packages/compose-language-service/src/test/providers/DocumentFormattingProvider.test.ts
+++ b/packages/compose-language-service/src/test/providers/DocumentFormattingProvider.test.ts
@@ -65,6 +65,27 @@ volumes:
             await requestDocumentFormattingAndCompare(testConnection, uri, 2, expected2Space);
         });
 
+        it('Should NOT break YAML anchors', async () => {
+            // See https://github.com/microsoft/vscode-containers/issues/537
+            // The anchor must stay inline with its key and not be pushed onto a new line
+            const testObject = `version: "3.5"
+
+x-anchor: &anchor
+  FOO: bar
+
+services:
+  example:
+    <<: *anchor
+    image: alpine
+`;
+
+            const uri = testConnection.sendTextAsYamlDocument(testObject);
+
+            const expected2Space = testObject; // Output will be unchanged, anchors must not be broken
+
+            await requestDocumentFormattingAndCompare(testConnection, uri, 2, expected2Space);
+        });
+
         it('Should NOT wrap long string lines', async () => {
             const testObject = `version: '123'
 services: