For now, you may want to use VSCodium [1], which is a variant of VSCode which doesn't ship any non-free components (and also doesn't include Microsoft telemetry and such).
> Even though we do not pass the telemetry build flags (and go out of our way to cripple the baked-in telemetry), Microsoft will still track usage by default.
> Even though we do not pass the telemetry build flags (and go out of our way to cripple the baked-in telemetry), Microsoft will still track usage by default.