diff --git a/CHANGELOG.md b/CHANGELOG.md
index 27e8203..212628f 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -2,9 +2,13 @@
 
 All notable changes to the "sqlfluff" extension will be documented in this file.
 
+## [2.4.1] - 2023-07-27
+
+- Fix bugs with `SQLFluff Format Selection`.
+
 ## [2.4.0] - 2023-07-26
 
-- Fix bug with - `SQLFluff Format Selection` now can be placed in the context menu.
+- Fix bug with `SQLFluff Format Selection` now can be placed in the context menu.
 
 ## [2.3.9] - 2023-07-26
 
diff --git a/package.json b/package.json
index 128cab5..c6743f9 100644
--- a/package.json
+++ b/package.json
@@ -1,7 +1,7 @@
 {
   "name": "vscode-sqlfluff",
   "displayName": "sqlfluff",
-  "version": "2.4.0",
+  "version": "2.4.1",
   "description": "A linter and auto-formatter for SQLfluff, a popular linting tool for SQL and dbt.",
   "publisher": "dorzey",
   "icon": "images/icon.png",
diff --git a/src/features/providers/formatter/helper.ts b/src/features/providers/formatter/helper.ts
index 548edcf..8096280 100644
--- a/src/features/providers/formatter/helper.ts
+++ b/src/features/providers/formatter/helper.ts
@@ -38,9 +38,13 @@ export default class FormatHelper {
     let linesWithWhitespace: string[] = [];
 
     if (formatSettings?.preserveLeadingWhitespace) {
+      if (lines[0].startsWith(" ")) {
+        return lines;
+      }
+
       lines.forEach((line) => {
         const emptySpace = new Array(leadingWhitespace).join(" ");
-        const whitespaceLine = line === "" ? line : emptySpace.concat(line);
+        const whitespaceLine = !/\S/.test(line) ? line : emptySpace.concat(line);
         linesWithWhitespace.push(whitespaceLine);
       })
     } else {
diff --git a/src/features/providers/formatter/rangeFormat.ts b/src/features/providers/formatter/rangeFormat.ts
index 2d950ba..8db2de8 100644
--- a/src/features/providers/formatter/rangeFormat.ts
+++ b/src/features/providers/formatter/rangeFormat.ts
@@ -32,10 +32,15 @@ export class FormatSelectionProvider {
     const workingDirectory = Configuration.workingDirectory(rootPath);
     const textEdits: vscode.TextEdit[] = [];
 
-    const endCharacter = document.lineAt(range.end.line).range.end.character;
+    // Do not format the last line if it is only whitespace
+    const endLine = !/\S/.test(
+      document.lineAt(range.end.line).text.slice(0, range.end.character),
+    ) ? range.end.line - 1
+      : range.end.line;
+    const endCharacter = document.lineAt(endLine).range.end.character;
     const lineRange = new vscode.Range(
       new vscode.Position(range.start.line, 0),
-      new vscode.Position(range.end.line, endCharacter),
+      new vscode.Position(endLine, endCharacter),
     );
 
     if (workingDirectory?.includes("${")) {
@@ -85,7 +90,7 @@ export class FormatSelectionProvider {
 
     let lines = FormatHelper.parseLines(result.lines);
 
-    const leadingWhitespace = document.lineAt(range.start.line).firstNonWhitespaceCharacterIndex;
+    const leadingWhitespace = document.lineAt(range.start.line).firstNonWhitespaceCharacterIndex + 1;
     lines = lines ? FormatHelper.addLeadingWhitespace(lines, document.languageId, leadingWhitespace) : undefined;
 
     if (lines === undefined) return [];
diff --git a/test/.vscode/settings.json b/test/.vscode/settings.json
index 57c6187..8e146fd 100644
--- a/test/.vscode/settings.json
+++ b/test/.vscode/settings.json
@@ -6,11 +6,12 @@
   "sqlfluff.codeActions.excludeRules.workspace": false,
   "sqlfluff.config": "${workspaceFolder}/.sqlfluff",
   "sqlfluff.dialect": "postgres",
+  "sqlfluff.format.arguments": [],
   "sqlfluff.format.languages": [
     "sql",
     {
       "language": "markdown" ,
-      "contextMenuFormatOptions": false,
+      "contextMenuFormatOptions": true,
       "preserveLeadingWhitespace": true
     }
   ],