A group of Israeli researchers explored the security of the Visual Studio Code marketplace and managed to "infect" over 100 organizations by trojanizing a copy of the popular 'Dracula Official theme to include risky code. Further research into the VSCode Marketplace found thousands of extensions with millions of installs.
Yeah I’m not using anything like that. Bit irresponsible of MS to not audit this stuff, then. Lots of businesses allowing users to install vs code extensions freely even if they’re otherwise restricted for software installs.