Select to Matching Bracket direction should be end position to start position.

[ssigwart]

When using editor.emmet.action.balanceOut or editor.action.selectToBracket starting at the end bracket or HTML tag, the selection direction should be start to finish. That will allow you to use Shift + Up and Shift + Down to expand the selection. For example, below demonstrates what happens when you select from the ending brace and then try Shift + Up.

Current

Desired