After today's VS Code update Pioarduino which is not installed shows in PlatformIO

That isn’t a case. The correct behaviour is the New Project Wizard doesn’t specify the platform version so the project is using the latest platform version that was already downloaded.

It turned out the problem is because pioarduino platform (not extension, just pioarduino platform used via Platformio extension) replaces Platformio packages which it shouldn’t. Here is the explanation by ivankravets.