Right we've caught, let's see… {a thousand companies (including MS), governments around the word, and associated criminals} with their hand in the cookie-jar, over and over and over again, yet there's "no evidence." Billion-dollar databroker businesses non-withstanding. MS was first in line for the NSA as well.

I don't think all the telemetry is particularly useful, but there is no reason to give MS the benefit of the doubt here.

I don't totally agree with you on this. Telemetry on open source extension is public and opt-out, but it is neither on the MS VSCode builds or proprietary extensions. Additionally, I just can't believe that Microsoft uses telemetry data just for bug fixing, even without evidences, but that's only my opinion.