It'd be a security nightmare if it was more popular, but fortunately the community hovers around being big enough for serious work to be done but small enough that it's not worth writing malware for.
It's like saying the AUR is a security nightmare. You're just expected to be an adult and vet what you're using.
Emacs runs all elisp code as if it's part of Emacs. Think about what Emacs is capable of, and compare that to what a browser allows its extensions to do. No widely used software works like that because it's way too easy to abuse. Emacs gets away with it because it's not widely used.
I don't know the first thing about VSCode but I'm willing to bet there are strict limits to what its plugins are allowed to do.
One advantage for Emacs is it's both easy and common read the code of the plugins you are using. I can't tell you the last time I looked at the source code of a plugin for VS Code or any other editor. The last time I looked at the code for a plugin in Emacs was today.
Especially since you might not be familiar with the new one.
Personally, I'm trying out things in VS Code, just to see how they work. But when I need to work, I do it in Emacs, since I know it better.
Also, with VS Code, just while trying it out, simple things like cut & paste would stop working (choosing them from the menu, they would work, but trying to cut & paste with the key shortcuts and the mouse, wouldn't). You'd have to refresh the whole view or restart it, for cut & paste to become available again.