VS Code

"We just had an outdated sanity.io dependency used since 2016 to show release notes from sanity headless CMS, that was the only issue they found."

"That dependency has been there since 2016 and passed every check since then, now it looks compromised but NO ONE from Microsoft reached us to remove it. They just pulled down everything causing issues to millions of users, and causing a loop in vscode (yep, it's their fault)"

If the dependency has been compromised then extensions that use that dependency and ship compromised code are also compromised. Its a transitive property if it ships bad code.

With that in mind Microsoft yoinking the extension from the market place and user devices seems reasonable. But what was the "loop" they mention?

Breaking: software with "free" in the name turns out to be malicious