A group of Israeli researchers explored the security of the Visual Studio Code marketplace and managed to "infect" over 100 organizations by trojanizing a copy of the popular 'Dracula Official theme to include risky code. Further research into the VSCode Marketplace found thousands of extensions wit...
What should be done:
Escalate it to the people responsible for IT administration & security in your company or institution. They'll deal with it.
But the default step if you suspect of being infected is not to use the device at all until you got a green light for it from the security/admin folks. Power down, disconnect from any networks, either via physical cables or wireless, unplug external storage devices and wait for further info.