According to the CVSS metric, user interaction is required (UI:R). What interaction would the user have to do? The user would have be enticed to open a malicious file in a directory. Users should never open anything that they do not know or trust to be safe. How do I know if I am affected by this vulnerability? Customers running any Visual Studio Code Remote extensions (for example: Visual Studio Code Remote - SSH, Visual Studio Code Remote - Containers, or Visual Studio Code Remote - WSL extensions) are affected by this vulnerability. The fix for the vulnerability is in Visual Studio Code and not in the extensions. Customers running a Visual Studio Code Remote extension need to update Visual Studio Code to be protected from this vulnerability.
RyotaK (https://twitter.com/ryotkak)