Version

3.0.9

Reproduction link

https://codesandbox.io/s/romantic-raman-hhhoi?file=/src/App.vue

Steps to reproduce

Interpolation value is a vnode

What is expected?

display as HTML

What is actually happening?

display as string.

This is intentional, text interpolation always stringifies it. If you want to render VNode in template, you need to use dynamic components, see https://codesandbox.io/s/laughing-hoover-fgipn?file=/src/App.vue