Zero-trust networking still involves threat models and things which you are and aren't trying to defend against. The "airtight hatchway" concept is just that on

Zero-trust networking still involves threat models and things which you are and aren't trying to defend against. The "airtight hatchway" concept is just that once you've declared that a certain type of attack isn't something you're trying to prevent, there's no point in reporting issues which rely on that attack because it's already known to be vulnerable. Defense in depth can be seen as adding multiple hatchways, but there's still always going to be something inside the innermost one. If your threat model involves people trying to exfiltrate data from a developer machine with an internet connection in an innocent-looking way, this VSC feature is a problem. Most companies either don't make an attempt at preventing that, or would use an airgapped setup so it's not something worth caring about.