Earlier quoted context omitted.
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…
Non-malicious forks would choose a completely different name and mention the original in their README. Name squatting relies on people making a typo and installing your stuff. That cannot be innocent, come on now. Your link also does not prove anything except that people naively make extensions with the same name that feels cute or easily discoverable to them. I see no name squatting in that list, not in the top 10-2…
You are thinking of typosquatting. And my example shows people can publish extensions squatting on the same extension name as established ones while also changing other metadata to impersonate or spoof popular ones and confuse users quickly looking to install the extension.