If I need VS Code, I reach for VSCodium. https://vscodium.com/
The big difference is when it comes to extensions. VSCodium does not have access to the official Microsoft extension marketplace or any of the closed source Microsoft extensions. Most Open Source and third party extensions are available, but a few will be missing, with the biggest one probably being the Remote Development tools.
I consider vscodium to solve that problem by integrating with the operating system.
https://vscodium.com/#use-a-package-manager-deb-rpm-provided...
Since Fedora 39 does not default to a flatpak in the case of VScodium, it also solves the problem you describe.