Noticed this myself as a VSCode-derivative user.
But I think this is just because having multiple Python extensions enabled generally breaks the UX...
Since VSCode doesn't really have a nice way for multiple language extensions to cooperate, this looks like just a quick hack to make the initial UX better, unlikely to be "malicious".
EDIT: Silent downvotes, really? Prejudice is strong here...
Could they not gate this behind a notification on install?