Is the author aware of the vim plugin?
Edit: just looked up LazyVim and it seems to just be a prebuilt neovim config atop the VSCode-Neovim extension which was one of the aforementioned janky experiences (IIRC undo stack wasn’t shared with VSCode and would get out of sync). I think I tried it as a last ditch effort because someone else said that it’ll fix VSCode-Neovim plugin deficiencies but I ended up just going back to my simple but effective neovim config and using VSCode as a visual debugger. I’ll give it another go if you reckon it’s much better though.