diff --git a/src/resources/filters/quarto-post/foldcode.lua b/src/resources/filters/quarto-post/foldcode.lua
index c6c0feb263c..0e009874b22 100644
--- a/src/resources/filters/quarto-post/foldcode.lua
+++ b/src/resources/filters/quarto-post/foldcode.lua
@@ -32,14 +32,10 @@ function render_folded_block(block)
     div.content:insert(pandoc.RawBlock("html", "</details>"))
     return div
   end
-  local make_code_cell_scaffold = function(div)
-    return pandoc.Div({ block }, pandoc.Attr("", { "quarto-scaffold" }))
-  end
-  if not block.attr.classes:includes("cell-code") then
-    return nil
-  end
-  if not (_quarto.format.isHtmlOutput() or _quarto.format.isMarkdownWithHtmlOutput()) then
-    return make_code_cell_scaffold(block)
+  if (not block.attr.classes:includes("cell-code") or
+     (not (_quarto.format.isHtmlOutput() or 
+           _quarto.format.isMarkdownWithHtmlOutput()))) then
+    return block, false
   end
   local fold = foldAttribute(block)
   local summary = summaryAttribute(block)
@@ -47,12 +43,12 @@ function render_folded_block(block)
     block.attr.attributes["code-fold"] = nil
     block.attr.attributes["code-summary"] = nil
     if fold ~= "none" then 
-      return make_code_fold_html(fold, summary)
+      return make_code_fold_html(fold, summary), true
     else
-      return block
+      return block, false
     end
   else
-    return block
+    return block, false
   end
 end
 
@@ -77,15 +73,23 @@ function fold_code_and_lift_codeblocks()
           return nil, false
         end,
         CodeBlock = function(block)
-          local folded_block = make_scaffold(pandoc.Div, { render_folded_block(block) })
+          local folded_block, did_fold = render_folded_block(block)
+          local need_to_lift = did_fold or block.classes:includes("code-annotation-code")
+          if need_to_lift then
+            folded_block = make_scaffold(pandoc.Div, { folded_block } )
+          end
           if block.classes:includes("code-annotation-code") then
             prev_annotated_code_block_scaffold = folded_block
             prev_annotated_code_block = block
           else
             prev_annotated_code_block_scaffold = nil
           end
-          blocks:insert(folded_block)
-          return {}
+          if need_to_lift then
+            blocks:insert(folded_block)
+            return {}
+          else
+            return nil
+          end
         end,
         Div = function(div)
           if not div.classes:includes("cell-annotation") then
@@ -102,6 +106,7 @@ function fold_code_and_lift_codeblocks()
           })
           if need_to_move_dl then
             assert(prev_annotated_code_block_scaffold)
+            print(prev_annotated_code_block_scaffold)
             prev_annotated_code_block_scaffold.content:insert(div)
             return {}
           end
diff --git a/tests/docs/smoke-all/2024/01/19/8354.qmd b/tests/docs/smoke-all/2024/01/19/8354.qmd
new file mode 100644
index 00000000000..d2c4e1ca252
--- /dev/null
+++ b/tests/docs/smoke-all/2024/01/19/8354.qmd
@@ -0,0 +1,25 @@
+---
+title: "Untitled"
+format: latex
+execute:
+  warning: false
+_quarto:
+  tests:
+    latex:
+      ensureSnapshotMatches: true
+---
+
+```{r}
+#| label: tbl-tables
+#| tbl-cap: "Tables"
+#| tbl-subcap:
+#|   - cars
+#|   - pressure
+#| layout-ncol: 2
+
+library(knitr)
+kable(head(cars))
+kable(head(pressure))
+```
+
+See @tbl-tables for examples. In particular, @tbl-tables-2.
diff --git a/tests/docs/smoke-all/2024/01/19/8354.tex.snapshot b/tests/docs/smoke-all/2024/01/19/8354.tex.snapshot
new file mode 100644
index 00000000000..1ff018a3e72
--- /dev/null
+++ b/tests/docs/smoke-all/2024/01/19/8354.tex.snapshot
@@ -0,0 +1,251 @@
+% Options for packages loaded elsewhere
+\PassOptionsToPackage{unicode}{hyperref}
+\PassOptionsToPackage{hyphens}{url}
+\PassOptionsToPackage{dvipsnames,svgnames,x11names}{xcolor}
+%
+\documentclass[
+  letterpaper,
+  DIV=11,
+  numbers=noendperiod]{scrartcl}
+
+\usepackage{amsmath,amssymb}
+\usepackage{iftex}
+\ifPDFTeX
+  \usepackage[T1]{fontenc}
+  \usepackage[utf8]{inputenc}
+  \usepackage{textcomp} % provide euro and other symbols
+\else % if luatex or xetex
+  \usepackage{unicode-math}
+  \defaultfontfeatures{Scale=MatchLowercase}
+  \defaultfontfeatures[\rmfamily]{Ligatures=TeX,Scale=1}
+\fi
+\usepackage{lmodern}
+\ifPDFTeX\else  
+    % xetex/luatex font selection
+\fi
+% Use upquote if available, for straight quotes in verbatim environments
+\IfFileExists{upquote.sty}{\usepackage{upquote}}{}
+\IfFileExists{microtype.sty}{% use microtype if available
+  \usepackage[]{microtype}
+  \UseMicrotypeSet[protrusion]{basicmath} % disable protrusion for tt fonts
+}{}
+\makeatletter
+\@ifundefined{KOMAClassName}{% if non-KOMA class
+  \IfFileExists{parskip.sty}{%
+    \usepackage{parskip}
+  }{% else
+    \setlength{\parindent}{0pt}
+    \setlength{\parskip}{6pt plus 2pt minus 1pt}}
+}{% if KOMA class
+  \KOMAoptions{parskip=half}}
+\makeatother
+\usepackage{xcolor}
+\setlength{\emergencystretch}{3em} % prevent overfull lines
+\setcounter{secnumdepth}{-\maxdimen} % remove section numbering
+% Make \paragraph and \subparagraph free-standing
+\ifx\paragraph\undefined\else
+  \let\oldparagraph\paragraph
+  \renewcommand{\paragraph}[1]{\oldparagraph{#1}\mbox{}}
+\fi
+\ifx\subparagraph\undefined\else
+  \let\oldsubparagraph\subparagraph
+  \renewcommand{\subparagraph}[1]{\oldsubparagraph{#1}\mbox{}}
+\fi
+
+\usepackage{color}
+\usepackage{fancyvrb}
+\newcommand{\VerbBar}{|}
+\newcommand{\VERB}{\Verb[commandchars=\\\{\}]}
+\DefineVerbatimEnvironment{Highlighting}{Verbatim}{commandchars=\\\{\}}
+% Add ',fontsize=\small' for more characters per line
+\usepackage{framed}
+\definecolor{shadecolor}{RGB}{241,243,245}
+\newenvironment{Shaded}{\begin{snugshade}}{\end{snugshade}}
+\newcommand{\AlertTok}[1]{\textcolor[rgb]{0.68,0.00,0.00}{#1}}
+\newcommand{\AnnotationTok}[1]{\textcolor[rgb]{0.37,0.37,0.37}{#1}}
+\newcommand{\AttributeTok}[1]{\textcolor[rgb]{0.40,0.45,0.13}{#1}}
+\newcommand{\BaseNTok}[1]{\textcolor[rgb]{0.68,0.00,0.00}{#1}}
+\newcommand{\BuiltInTok}[1]{\textcolor[rgb]{0.00,0.23,0.31}{#1}}
+\newcommand{\CharTok}[1]{\textcolor[rgb]{0.13,0.47,0.30}{#1}}
+\newcommand{\CommentTok}[1]{\textcolor[rgb]{0.37,0.37,0.37}{#1}}
+\newcommand{\CommentVarTok}[1]{\textcolor[rgb]{0.37,0.37,0.37}{\textit{#1}}}
+\newcommand{\ConstantTok}[1]{\textcolor[rgb]{0.56,0.35,0.01}{#1}}
+\newcommand{\ControlFlowTok}[1]{\textcolor[rgb]{0.00,0.23,0.31}{#1}}
+\newcommand{\DataTypeTok}[1]{\textcolor[rgb]{0.68,0.00,0.00}{#1}}
+\newcommand{\DecValTok}[1]{\textcolor[rgb]{0.68,0.00,0.00}{#1}}
+\newcommand{\DocumentationTok}[1]{\textcolor[rgb]{0.37,0.37,0.37}{\textit{#1}}}
+\newcommand{\ErrorTok}[1]{\textcolor[rgb]{0.68,0.00,0.00}{#1}}
+\newcommand{\ExtensionTok}[1]{\textcolor[rgb]{0.00,0.23,0.31}{#1}}
+\newcommand{\FloatTok}[1]{\textcolor[rgb]{0.68,0.00,0.00}{#1}}
+\newcommand{\FunctionTok}[1]{\textcolor[rgb]{0.28,0.35,0.67}{#1}}
+\newcommand{\ImportTok}[1]{\textcolor[rgb]{0.00,0.46,0.62}{#1}}
+\newcommand{\InformationTok}[1]{\textcolor[rgb]{0.37,0.37,0.37}{#1}}
+\newcommand{\KeywordTok}[1]{\textcolor[rgb]{0.00,0.23,0.31}{#1}}
+\newcommand{\NormalTok}[1]{\textcolor[rgb]{0.00,0.23,0.31}{#1}}
+\newcommand{\OperatorTok}[1]{\textcolor[rgb]{0.37,0.37,0.37}{#1}}
+\newcommand{\OtherTok}[1]{\textcolor[rgb]{0.00,0.23,0.31}{#1}}
+\newcommand{\PreprocessorTok}[1]{\textcolor[rgb]{0.68,0.00,0.00}{#1}}
+\newcommand{\RegionMarkerTok}[1]{\textcolor[rgb]{0.00,0.23,0.31}{#1}}
+\newcommand{\SpecialCharTok}[1]{\textcolor[rgb]{0.37,0.37,0.37}{#1}}
+\newcommand{\SpecialStringTok}[1]{\textcolor[rgb]{0.13,0.47,0.30}{#1}}
+\newcommand{\StringTok}[1]{\textcolor[rgb]{0.13,0.47,0.30}{#1}}
+\newcommand{\VariableTok}[1]{\textcolor[rgb]{0.07,0.07,0.07}{#1}}
+\newcommand{\VerbatimStringTok}[1]{\textcolor[rgb]{0.13,0.47,0.30}{#1}}
+\newcommand{\WarningTok}[1]{\textcolor[rgb]{0.37,0.37,0.37}{\textit{#1}}}
+
+\providecommand{\tightlist}{%
+  \setlength{\itemsep}{0pt}\setlength{\parskip}{0pt}}\usepackage{longtable,booktabs,array}
+\usepackage{calc} % for calculating minipage widths
+% Correct order of tables after \paragraph or \subparagraph
+\usepackage{etoolbox}
+\makeatletter
+\patchcmd\longtable{\par}{\if@noskipsec\mbox{}\fi\par}{}{}
+\makeatother
+% Allow footnotes in longtable head/foot
+\IfFileExists{footnotehyper.sty}{\usepackage{footnotehyper}}{\usepackage{footnote}}
+\makesavenoteenv{longtable}
+\usepackage{graphicx}
+\makeatletter
+\def\maxwidth{\ifdim\Gin@nat@width>\linewidth\linewidth\else\Gin@nat@width\fi}
+\def\maxheight{\ifdim\Gin@nat@height>\textheight\textheight\else\Gin@nat@height\fi}
+\makeatother
+% Scale images if necessary, so that they will not overflow the page
+% margins by default, and it is still possible to overwrite the defaults
+% using explicit options in \includegraphics[width, height, ...]{}
+\setkeys{Gin}{width=\maxwidth,height=\maxheight,keepaspectratio}
+% Set default figure placement to htbp
+\makeatletter
+\def\fps@figure{htbp}
+\makeatother
+
+\KOMAoption{captions}{tableheading}
+\makeatletter
+\@ifpackageloaded{caption}{}{\usepackage{caption}}
+\AtBeginDocument{%
+\ifdefined\contentsname
+  \renewcommand*\contentsname{Table of contents}
+\else
+  \newcommand\contentsname{Table of contents}
+\fi
+\ifdefined\listfigurename
+  \renewcommand*\listfigurename{List of Figures}
+\else
+  \newcommand\listfigurename{List of Figures}
+\fi
+\ifdefined\listtablename
+  \renewcommand*\listtablename{List of Tables}
+\else
+  \newcommand\listtablename{List of Tables}
+\fi
+\ifdefined\figurename
+  \renewcommand*\figurename{Figure}
+\else
+  \newcommand\figurename{Figure}
+\fi
+\ifdefined\tablename
+  \renewcommand*\tablename{Table}
+\else
+  \newcommand\tablename{Table}
+\fi
+}
+\@ifpackageloaded{float}{}{\usepackage{float}}
+\floatstyle{ruled}
+\@ifundefined{c@chapter}{\newfloat{codelisting}{h}{lop}}{\newfloat{codelisting}{h}{lop}[chapter]}
+\floatname{codelisting}{Listing}
+\newcommand*\listoflistings{\listof{codelisting}{List of Listings}}
+\makeatother
+\makeatletter
+\makeatother
+\makeatletter
+\@ifpackageloaded{caption}{}{\usepackage{caption}}
+\@ifpackageloaded{subcaption}{}{\usepackage{subcaption}}
+\makeatother
+\ifLuaTeX
+  \usepackage{selnolig}  % disable illegal ligatures
+\fi
+\usepackage{bookmark}
+
+\IfFileExists{xurl.sty}{\usepackage{xurl}}{} % add URL line breaks if available
+\urlstyle{same} % disable monospaced font for URLs
+\hypersetup{
+  pdftitle={Untitled},
+  colorlinks=true,
+  linkcolor={blue},
+  filecolor={Maroon},
+  citecolor={Blue},
+  urlcolor={Blue},
+  pdfcreator={LaTeX via pandoc}}
+
+\title{Untitled}
+\author{}
+\date{}
+
+\begin{document}
+\maketitle
+
+\begin{Shaded}
+\begin{Highlighting}[]
+\FunctionTok{library}\NormalTok{(knitr)}
+\FunctionTok{kable}\NormalTok{(}\FunctionTok{head}\NormalTok{(cars))}
+\FunctionTok{kable}\NormalTok{(}\FunctionTok{head}\NormalTok{(pressure))}
+\end{Highlighting}
+\end{Shaded}
+
+\begin{table}
+
+\caption{\label{tbl-tables}Tables}
+
+\begin{minipage}{0.50\linewidth}
+
+\subcaption{\label{tbl-tables-1}cars}
+
+\centering{
+
+\begin{tabular}{rr}
+\toprule
+speed & dist\\
+\midrule
+4 & 2\\
+4 & 10\\
+7 & 4\\
+7 & 22\\
+8 & 16\\
+9 & 10\\
+\bottomrule
+\end{tabular}
+
+}
+
+\end{minipage}%
+%
+\begin{minipage}{0.50\linewidth}
+
+\subcaption{\label{tbl-tables-2}pressure}
+
+\centering{
+
+\begin{tabular}{rr}
+\toprule
+temperature & pressure\\
+\midrule
+0 & 0.0002\\
+20 & 0.0012\\
+40 & 0.0060\\
+60 & 0.0300\\
+80 & 0.0900\\
+100 & 0.2700\\
+\bottomrule
+\end{tabular}
+
+}
+
+\end{minipage}%
+
+\end{table}%
+
+See Table~\ref{tbl-tables} for examples. In particular,
+Table~\ref{tbl-tables-2}.
+
+
+
+\end{document}
diff --git a/tests/verify.ts b/tests/verify.ts
index 48116ec0737..0288b7761a7 100644
--- a/tests/verify.ts
+++ b/tests/verify.ts
@@ -237,6 +237,12 @@ export const ensureSnapshotMatches = (
     name: "Inspecting Snapshot",
     verify: async (_output: ExecuteOutput[]) => {
       const good = await checkSnapshot(file);
+      if (!good) {
+        console.log("output:");
+        console.log(await Deno.readTextFile(file));
+        console.log("snapshot:");
+        console.log(await Deno.readTextFile(file + ".snapshot"));
+      }
       assert(
         good,
         `Snapshot ${file}.snapshot doesn't match output`,