Windows has an overarching telemetry collection system and VSCode might use that on Windows.
There is an application in the Microsoft store you can install that lets you view all telemetry collected by Microsoft, and the actual data is encrypted. The metadata (which tells you WHAT is being collected) is not. Knowing the people I have worked with in the past, this is to securely prevent modification by users before the data is actually sent. I've worked with lots of people who would modify that data to attempt to get a feature added that they wanted or just to screw with MS.
That tool also gives you the option to delete all telemetry sent from that machine in Microsoft's possession.
There is an application in the Microsoft store you can install that lets you view all telemetry collected by Microsoft, and the actual data is encrypted. The metadata (which tells you WHAT is being collected) is not. Knowing the people I have worked with in the past, this is to securely prevent modification by users before the data is actually sent. I've worked with lots of people who would modify that data to attempt to get a feature added that they wanted or just to screw with MS.
That tool also gives you the option to delete all telemetry sent from that machine in Microsoft's possession.