Personally I think Microsoft was in the right. Obfuscated code like this shouldn't be in an extension, at least with out a very big warning and a red flag.
https://github.com/t3dotgg/vsc-material-but-i-wont-sue-you
Also,
> obfuscated code which spawns child processes to download data for unnecessary reasons
https://github.com/microsoft/vsmarketplace/issues/1168#issue...
No one in the right mind would expect a theme to do this. Its only purpose is to provide static data to the editor.