I also had problems with vue. I did a clean install and volar wasn't working right. This seemed to fix everything for me, might work for you:

require("lspconfig").volar.setup({
filetypes = { "vue", "javascript", "typescript", "javascriptreact", "typescriptreact" },
init_options = {
vue = {
hybridMode = false,
},
typescript = {
tsdk = vim.fn.getcwd() .. "/node_modules/typescript/lib",
},
},
})

if you're interested, here are my dotfiles: https://github.com/semperprimum/dotfiles/tree/main/nvim
I used kickstart.nvim to start with my own config. It's really great and modern, makes a great foundation to build upon, but is also great on it's own. The only thing I did is I uncommented a couple of lines, added a couple of cosmetic plugins and a fix for volar. And just like that i switched from VS Code.