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.
I’d like to see permissions in VSCode plugins, so e.g. I could see that a plugin x can’t touch the filesystem or internet and is therefore more likely to be benign.