Formatting with gg=G on *.cfg files (Nagios) results in bad indentation

Question

Search-fu power is eluding me for this one.

Have many Nagios (*.cfg) files under audit, using Vim to work on them.

Notice that doing gg=G is not correctly formatting the files or a block if using = with movement commands.

My .vimrc looks like this:

syntax on
filetype on
filetype plugin on
filetype indent on

set t_Co=256

set title
set hlsearch
set incsearch
set ignorecase
set shiftround
set smarttab
set expandtab
set shiftwidth=2
set softtabstop=2
set tabstop=2
set smartindent
set copyindent
set autoindent
set mouse=a
set laststatus=2
set number
if v:version > 703
    set relativenumber " Introduced from v7.3 onwards
endif
set ruler
set showcmd
set background=dark
colorscheme elflord

" MultipleSearch
"======================
"let g:MultipleSearchMaxColors = 20
"let g:MultipleSearchColorSequence="darkcyan,gray,LightCyan,LightBlue,LightGreen,blue,green,magenta,cyan,gray,brown"
"let g:MultipleSearchTextColorSequence= "white,DarkRed,black,black,black,white,black,white,red,black,white"

" block cursor (and blinking?) mostly (a fix) for cygwin
let &t_ti.="\e[1 q"
let &t_SI.="\e[5 q"
let &t_EI.="\e[1 q"
let &t_te.="\e[0 q"

" Allow saving of files as sudo when I forgot to start vim using sudo.
cmap w!! w !sudo tee > /dev/null %

Thing is, that when formatting a file full of this kind of blocks with gg=G:

define service{
use                     prod
host_name               some_host
service_description     some_service_desc
servicegroups           some_sgroup
notes_url               https://some.notes.comh/notes.md
check_period            somep_S21h00-S09h00
notification_period     somep_S21h00-S09h00
contact_groups          some_contacsg
notification_options    c,r
check_command           check_nrpe_timeout!30!check_proc2!java!1:1!prod!"important-process"
}

Expected:

define▪service{¬
▪▪use▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪prod¬
▪▪host_name▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪some_host¬
▪▪service_description▪▪▪▪▪some_service_desc¬
▪▪servicegroups▪▪▪▪▪▪▪▪▪▪▪some_sgroup¬
▪▪notes_url▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪https://some.notes.comh/notes.md¬
▪▪check_period▪▪▪▪▪▪▪▪▪▪▪▪somep_S21h00-S09h00¬
▪▪notification_period▪▪▪▪▪somep_S21h00-S09h00¬
▪▪contact_groups▪▪▪▪▪▪▪▪▪▪some_contacsg¬
▪▪notification_options▪▪▪▪c,r¬
▪▪check_command▪▪▪▪▪▪▪▪▪▪▪check_nrpe_timeout!30!check_proc2!java!1:1!prod!"important-process"¬
}¬

But, getting instead:

define▪service{¬
▪▪use▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪prod¬
▪▪▪▪host_name▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪some_host¬
▪▪▪▪service_description▪▪▪▪▪some_service_desc¬
▪▪▪▪servicegroups▪▪▪▪▪▪▪▪▪▪▪some_sgroup¬
▪▪▪▪notes_url▪▪▪▪▪▪▪▪▪▪▪▪▪▪▪https://some.notes.comh/notes.md¬
▪▪▪▪check_period▪▪▪▪▪▪▪▪▪▪▪▪somep_S21h00-S09h00¬
▪▪▪▪notification_period▪▪▪▪▪somep_S21h00-S09h00¬
▪▪▪▪contact_groups▪▪▪▪▪▪▪▪▪▪some_contacsg¬
▪▪▪▪notification_options▪▪▪▪c,r¬
▪▪▪▪check_command▪▪▪▪▪▪▪▪▪▪▪check_nrpe_timeout!30!check_proc2!java!1:1!prod!"important-process"¬
}¬

Some settings from the .vimrc have been applied locally with no avail.

setlocal expandtab smarttab smartindent shiftwidth=2 softtabstop=2 tabstop=2 autoindent mouse=a hlsearch incsearch ignorecase

Probably, I am missing a basic thing here or is just the normal behavior from the filetype for *.cfg files, thanks for the pointers.