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Any reason why Microsofts own extensions are not able use the global settings disabling telemetry?

The package they are using “vscode-extension-telemetry” actually does use the global setting. https://github.com/Microsoft/vscode-extension-telemetry/blob... Third-party extensions can read that setting too so they can respect the global choice.

Because then they don't get to hoover up as much of your data.