This is probably old news to everyone, but the scope of the quote toggle did not include source. At least in my version of the bundle, it just had string.quoted.double, string.quoted.single. If the quotes were included in the selection, then the scope devolved to text.html.basic, source.php.embedded.block.html (my file type is set to html). 

I added 'source'  to the scope list and this fixed the "problem". I figure toggling quotes is useful in any source location. 



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Brad Tittle
Tech Support