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OK, just trying to figure out who is the target audience here
You must be "somewhat" paranoid (you means potential target user, not the OP )
Paranoid enough that network monitor after you turn the telemetry off is not enough to convince you that it is really off, but not too much paranoid or you wouldn't even consider using Microsoft product.
Having access to the source code you are not willing or be able to build this thing yourself. I was going to say "lazy" here because the mere fact you want this thing should imply you know how to build an app but there may be other cases why it's not going to happen (I didn't try it myself so I don't know how complicated it is to build VSCode).
So considering 1 & 2 you are going to trust some random guy that says he built it for you. Good, now you can be sure there is no pesky tracking because he said so
"My software never has bugs. It just develops random features."
".45 ACP - because shooting twice is just silly" - JSOP, 2010 ----- You can never have too much ammo - unless you're swimming, or on fire. - JSOP, 2010 ----- When you pry the gun from my cold dead hands, be careful - the barrel will be very hot. - JSOP, 2013