Using the dark theme (after trying all of them) I have all of the setings turned off.
Yet when you select a tag it still hilites all of the matching tags.
Ideally this should select the opening and matched pair closing tag only.
EDIT: This seems to occur only when double clicking on a tag. IS this by design?
Yes Monaco highlights per default the same words - but we hate it as well 
so will switch it off in the next update
I’ve been having some difficultly understanding why selecting beginning and end tags seems to work erratically. I think I’ve found the answer.
Try enabling ‘Occurrences highlight’ shown in your screenshot, and then change the Language Mode to HTML.
Before:
After:
It’s a pain to have to switch language every time you open a page. In HTML language I also get this annoying pop up when I hover over any tags.
Yes we will improve that too.
That is why we run now in preview/experimental mode so you can report all those bugs and we can squash them
