It’s sort of minimalistic / lightweight alternative for IntellJ. Red Hat is working on the extension(s) which have worked fine for me at least for the past few years and it gets updates regularly.
I use VSCode for C++, C#, Java, Python and for things like docker-files, html etc. IntelJ is fine but a bit bloated in comparison with its menus, sub-menus, sub-sub-menus and built in unnecessary extra features for those just looking for code editor.
VSCode workflow with Java is mainly using it to write code, run tests, configure maven/gradle/docker/etc rest is more or less using CLI and Command palette.
These are sound like things that are just begging European union to milk out some cash from Microsoft through fines.