Hello 👋 I'm from the VS Code team.
Recently, we have been exploring a security feature we refer to as Workspace Trust. This feature is intended to centralize and unify a security conscious decision required by a variety of VS Code features. With workspace trust, the user will be able to declare whether or not they trust the folder that is opened in VS Code before these features are executed.
Your extension is incredibly popular with VS Code users! We want to make sure that those users have a delightful experience with workspace trust and that includes extension authors deciding how much of their extension is supported in an untrusted workspace.