Surrounding with Emmet does not work

Hello,
I would like to use Emmet surrounding as documentation describes in Laravel blade templates (php files). I have a short key which displayes Emmet dialog for surrounding, but whatever I write there (e.g. p*), input line is still red. Every input is invalid.

Generating without dialog by typing e.g. ul>li.item + tab works fine.

How can I enable Emmet surrounding please?