Earlier quoted context omitted.
Name squatting always betrays malicious intent. No benefit of the doubt is owed to anyone practicing it.
Before you go down this rabbit hole, consider that many extensions are slight forks of others. There isn't always malicious intent. Just people who try to extend the extensions and publish them without knowing otherwise. For example go look at any popular "Hello world" type of extension and you'll see many results of extensions in this definition of "name squatting". i.e. https://marketplace.visualstudio.com/search?t…
And telemetry for a fucking color theme? You've got shitting me. Whoever did this is a Grade-A scumbag. It didn't happen by accident and there is no possible benign motivation for it. I hope somebody has reported this to the FBI and other relevant authorities.