use decodeCharacterReferences in text.js, not tag.js

compiler/parse/state/tag.js

@@ -57,12 +57,12 @@ export default function tag ( parser ) {
 			const lastChild = element.children[ element.children.length - 1 ];
 
 			if ( firstChild.type === 'Text' ) {
-				firstChild.data = trimStart( decodeCharacterReferences( firstChild.data ) );
+				firstChild.data = trimStart( firstChild.data );
 				if ( !firstChild.data ) element.children.shift();
 			}
 
 			if ( lastChild.type === 'Text' ) {
-				lastChild.data = trimEnd( decodeCharacterReferences( lastChild.data ) );
+				lastChild.data = trimEnd( lastChild.data );
 				if ( !lastChild.data ) element.children.pop();
 			}
 		}

compiler/parse/state/text.js

@@ -1,3 +1,5 @@
+import { decodeCharacterReferences } from '../utils/html.js';
+
 export default function text ( parser ) {
 	const start = parser.index;
 
@@ -11,7 +13,7 @@ export default function text ( parser ) {
 		start,
 		end: parser.index,
 		type: 'Text',
-		data
+		data: decodeCharacterReferences( data )
 	});
 
 	return null;

test/parser/convert-entities-in-element/input.html

@@ -0,0 +1 @@
+<p>Hello &amp; World</p>

test/parser/convert-entities-in-element/output.json

@@ -0,0 +1,26 @@
+{
+	"html": {
+		"start": 0,
+		"end": 24,
+		"type": "Fragment",
+		"children": [
+			{
+				"start": 0,
+				"end": 24,
+				"type": "Element",
+				"name": "p",
+				"attributes": [],
+				"children": [
+					{
+						"start": 3,
+						"end": 20,
+						"type": "Text",
+						"data": "Hello & World"
+					}
+				]
+			}
+		]
+	},
+	"css": null,
+	"js": null
+}

test/parser/convert-entities/input.html

@@ -1 +1 @@
-<p>Hello &amp; World</p>
+Hello &amp; World

test/parser/convert-entities/output.json

@@ -1,27 +1,17 @@
 {
-  "hash": 1090309355,
-  "html": {
-    "start": 0,
-    "end": 24,
-    "type": "Fragment",
-    "children": [
-      {
-        "start": 0,
-        "end": 24,
-        "type": "Element",
-        "name": "p",
-        "attributes": [],
-        "children": [
-          {
-            "start": 3,
-            "end": 20,
-            "type": "Text",
-            "data": "Hello & World"
-          }
-        ]
-      }
-    ]
-  },
-  "css": null,
-  "js": null
+	"html": {
+		"start": 0,
+		"end": 17,
+		"type": "Fragment",
+		"children": [
+			{
+				"start": 0,
+				"end": 17,
+				"type": "Text",
+				"data": "Hello & World"
+			}
+		]
+	},
+	"css": null,
+	"js": null
 }