Visual Studio Code has come a long way since it was announced. The plug-in system has been greatly improved and it feels almost like working with Visual Studio C++ projects. Pick a folder as a "project" and you're good to go.
I made the switch to Visual Studio Code fairly recently, around the same time I starting this side project. The primary feature that makes Visual Studio Code useful is the command line pane which is mainly used for typing "make" or "runc64" or "dbgc64".
The intent was to use classic make to compile the source files, but since make wasn't already installed it is still just a batch file named make.bat. Batch files for starting and debugging the project just makes sense!
I made a custom syntax highlighting plug-in that is included with the x65 assembler. The one thing I would really want is color syntax highlighting per language (file extension) rather than globally within the editor.