Emmett abreviation won't be expand with tab key

When I have tab set to expand Emmett abbreviations like so:

Pressing the tab key will not expand abbreviations typed in HTML/Blade files, instead it types a tab character or space.

Here is a screen recording demonstrating the problem:

https://paste.artichokenetwork.com/s/ju4dolxt.webm

In the screen recording, I press tab immediately after typing "div.testDiv", and the abbreviation is not expanded.

However, when I set the key to expand abbreviations to something else like space or enter, the abbreviation do get expanded.

I have tried disabling all plugins. I'm using Phpstorm/Jetbrains Client 2022.3.2.

How can I fix this issue?