Looks like you’re running the OSS version of VSCode which doesn’t have the Microsoft marketplace stuff? PlatformIO needs the Microsoft C/C++ extension and other Intellisense stuff… Try a to install a normal VSCode version and retry.
While the version number and commit are the same, dates and such like are different.
I used to use VSCodium, as that didn’t have the Microsoft Telemetry enabled, but a few releases back, things changed and it was no longer able to see the Microsoft Marketplace.
I’m running the official Microsoft version with no telemetry enabled as I have a “piHole” on my network, to get rid of adverts and telemetry and trackers etc.