Markdown deep nav doesn't work if fragment is a literal with spaces

[gmccullo]

Type: Bug

Create a page like this:

# header 1

1. [literal 1](<#header 1>)
2. [encoded 1](#header-1)

Both links are valid. But only the 2nd one will navigate to header 1.

VS Code version: Code 1.116.0 (560a9db, 2026-04-15T00:28:13Z)
OS version: Windows_NT x64 10.0.26200
Modes:

System Info

Item	Value
CPUs	AMD Ryzen 7 3750H with Radeon Vega Mobile Gfx (8 x 2296)
GPU Status	2d_canvas: enabled GPU0: VENDOR= 0x1002, DEVICE=0x15d8 [AMD Radeon(TM) RX Vega 10 Graphics], DRIVER_VENDOR=AMD, DRIVER_VERSION=31.0.21905.1001 ACTIVE GPU1: VENDOR= 0x1414, DEVICE=0x008c [Microsoft Basic Render Driver], DRIVER_VERSION=10.0.26100.8246 Machine model name: Machine model version: direct_rendering_display_compositor: disabled_off_ok gpu_compositing: enabled multiple_raster_threads: enabled_on opengl: enabled_on rasterization: enabled raw_draw: disabled_off_ok skia_graphite: disabled_off trees_in_viz: disabled_off video_decode: enabled video_encode: enabled webgl: enabled webgl2: enabled webgpu: enabled webnn: disabled_off
Load (avg)	undefined
Memory (System)	61.95GB (39.93GB free)
Process Argv	--crash-reporter-id 2ba0f4e4-3510-454f-9af6-136975db26b9
Screen Reader	no
VM	0%

Extensions disabled

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