However VS Code cannot block the extensions that you install from collecting their own telemetry. Even if use a version of VS Code built from source, an extension that you install could still collect telemetry of its own. Same applies to most software that allows third party plugins (unless they do some serious sandboxing/capability restriction, or only allow installing specifically vetted plugins)
[1]: https://code.visualstudio.com/docs/supporting/faq#_how-to-di...