It applies to VIM users only. In standalone Vim we can toggle statusbar color based on which VIM mode we are in. In Vscode, it’s the same exact feature. I found it distracting as it keeps changing color.
I made changes to my settings and forgot that I had also enabled this particular setting.
The setting is
vim.statusBarColorControl . Open vscode settings.json and then set it to false.
it should fix the statusbar flashing caused by changes in mode. You can see it in Gif attached with this post.