The folding is available by CodeMirror, which can be modified via the Advanced Settings Editor > Text Editor, and might get you closer to what you’re looking for:
{
"editorConfig": {
"codeFolding": true
}
}
I don’t know of a pithy way to get indentation characters to show in codemirror, but there might be something out there that could be wrapped into…
As for LSP-in-lab: there’s jupyterlab-lsp which knows how to work with python-lsp-server. There’s also a longer discussion.