The security model, or almost lack of any whatsoever in VSCode drove me to only install MSFT extensions, then use Code Server in a docker container, but I decided I didn’t like using my editor in a browser. Finally I have decided to start using Zed, which isn’t perfect on the security front, but much better IMHO. The combination of WASM extensions, and the ability to put language servers, etc, in dev-containers seems…
To be honest I doubt there's much that they can do. Many many language servers cannot run in WASM, or it would be super hard to compile them to WASM. So Zed either has to allow running arbitrary binaries like VSCode, or accept that they're going to have really poor extension support.