You don't need VSCode specifically, but it does provide an alternative GUI for managing Docker containers that isn't tied directly to Docker Desktop.

You could use anything to manage the Docker VM... VSCode is just one option.

Well, it does set up everything automagically for you. I can also dig around for my Docker CLI config and the right way to expose the Docker TCP socket to the host, but if you need a quick way to get working, VS Code is it.