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.
At the time of the article, the extension listed around 300 hundred installation on the VS marketplace. There is a lot of bots downloading packages, one extension i contribute to, and nobody use it except 3 peoples, have been indicated to be downloaded 238 times.
If you look at the number of extensions available on the vscode marketplace, and the false positive they listed as “malicious code” (read the code attentively), I’m sure my own extension will show up in their “malicious code” (it isn’t)