For anyone wishing for a VS Code fix, comment on this issue: https://github.com/microsoft/vscode/issues/41909#issuecommen...
This whole file-based routing wasn't a great idea to begin with, as a general solution to routing. It works (up to a point) for a static site generator, but most SSGs provide a permalink setting so there's an escape hatch.
The whole thing gets even worse when you start introducing issues like having dozens if not hundreds of files with the same filename, weird characters in folder and file names, etc.