It works so crazy well that sometimes it works and then I stop and think: how did that work.

Example: I type code ./somefolder in WSL and it opens VSCode on Windows, editing the folder I specified.

Edit: danieldk replied just before me, but I think my answer adds to that instead of just duplicating danieldks.

Also danieldks answer highlights something important: it doesn't seem to be just magic shell wrappers (or if it is they are truly magic).

VSCode is somewhat special when it comes to editing files, Notepad is not.