In this case, VSCode is probably using the most reasonable approach to blinking a cursor: a `step` timing-function with a CSS keyframe animation. This tells the browser to only change the opacity every 500ms. Meanwhile, Chrome hasn't yet optimised this completely yet, hence http://crbug.com/361587.
So currently, Chrome is doing the full rendering lifecycle (style, paint, layers) every 16ms when it should be only doing that work at a 500ms interval. I'm confident that the engineers working on Chrome's style components can sort this out, but it'll take a little bit of work. I think the added visibility on this topic will likely escalate the priority of the fix. :)
* Simple text editors, and basic ones built on [contenteditable] can, but those rarely scale to the feature set most want.
(I work on the Chrome team, though not on the rendering engine)