Total anecdata but I don't appreciate the nag screen every time I've opened repos that I have either authored or contributed heavily to... I default to "yes I accept in this directory and all directories" which seems very sketchy in general, but is the easiest for me to get my work done.
This happens even in files I just created or when doing `code ~./zshrc`. It's pretty annoying. I'm a developer, I know what I'm doing. I don't need to be asked whether I trust a Python notebook or not.
Which is kind of ridiculous because .zshrc isn't a workspace. My understanding of this feature was to calm fears of untrusted code running due to some configuration in .vscode configurations or with plugins.
Basically the files and folders are usually innocuous, it's the particular configuration of the workspace or plugins that may run code on them that need to be "trusted" or designed to request permission before executing code