I tried several different extensions but ended up with Obsidian. The biggest obstacle is that VS Code is projects centered and I don't want to recreate notes structure every time I start new. At the same time Obsidian offers consistent linearly growing tree of notes in your preferable structure.
I can switch projects several many times a day in VS Code and almost never switch vaults in Obsidian. For every project I have its own structure and can copy-paste items between if I need.
Just share how I organized my workflow.