When some minor extension that I have installed on VSCode updates (like parens colorizing and the like) I think what could happend if the author sells it to some bad actor (or decides to push some weird code in an update).
So I started uninstalling some icon themes and less used extensions that I installed on a whim years ago.
I implicitly trust extensions by Google, Microsoft and the like, but the less known published make me nervous.
It doesn't even have to be malicious. I used a certain syntax highlighting theme for years, when out of nowhere the author pushed an update that rearranged all the colors. It was extremely disorienting. I forked the extension and reverted the change, so I know that one at least won't change out from under me anymore.