Vim has this odd behaviour: when I launch it in a terminal emulator under X, it highlights closed folds, but when I launch it in console, closed folds' representation is more sensible: they are just light blue, not in standout/reverse mode. I would very much like Vim to behave under X the same as in console, as I find highlighted folds highly distracting.
Which option controls this?
Look at :hi Folded. You probably have
Folded xxx term=standout . . .
Importantly, vim's term= entry denotes a terminal it thinks cannot produce color (as opposed to cterm=). So, one potential way to resolve your issue is to properly set up color in xterm and vim.
Alternatively use
hi! Folded term=NONE
However, if your color scheme overrides this, you will need to do this each time your colors are applied.
