Interesting thing to notice is that for vscode plugin it probably doesn't have to be fast/incremental – the reason is that you want to skip node_modules complet

Interesting thing to notice is that for vscode plugin it probably doesn't have to be fast/incremental – the reason is that you want to skip node_modules completely (minus symlinked) - because it's for code you're developing, not full blown tree shaking on final bundle that has to visit everything.