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For the next update, v1.58, more Workspace Trust functionality is planned, and the roadmap's security work includes: "Trusted workspaces: Ensure it's safe to clone a repo and read the source code ...
The remote code execution bug, tracked as CVE-2020-1192, is exposed when Microsoft's VS Code Python extension loads workspace settings from a file from a notebook, such as Jupyter.
This means Visual Studio Online will also support all the extensions that are currently available for Visual Studio Code, as well as popular features like Visual Studio Code workspaces.