Curiously, someone on reddit noticed suspicious changes in this extension 7 months ago [1]. Obfuscation in open source is usually an extreme red flag. Microsoft really needs to rethink their security model for vs code extensions. It has simply become way too profitable to target given whatever they are doing against it. For every dev they ban 10 will come with new malicious extensions.
[1] https://www.reddit.com/r/vscode/comments/1eq40o2/has_the_mat...