I guess it is just me, but I have never clicked on that pop-up. I always go to the extension tab and add extensions there, where the second link at the top, has a direct link to the licence of said extension. I always go to the extensions tab because it provides documentation about the extension, which I want to read before I add it to my IDE.
Even that page doesn’t tell you the license. It just has a link to “license”, and given that VS Code is marketed as open source software, and there’s often even a GitHub link (for issues), it’d be pretty easy that the “license” linked to was GPL or MIT or something.
Many times, how developers / (manager that think it is a great idea) design an application and how users, use an application do not intersect. I personally would not install an extension to my IDE without at least skimming the docs, checking the licence to see if I am going to have to subscribe or pay later, and checking reviews to ensure that it's a legit extension. I am certain, that there is a contingent of people that do, but as for developers, I would expect them to be a power users that knows better than to just click a yeah, sure install that button.
Honestly, if that where the only way to install extensions on VS Code it would probably be a deal breaker for me. I never install something because the application tells me I should. Especially in an ecosystem where anyone can provide a package. To me it would be akin to blindly adding an Node module, python module, jar or any other third party provided dependency to the custom software I am writing without first vetting it. I mean the licence for an extension, could very well state, that any software produce form the use of this extension, entitles the author of the extension a 10% royalty from said resulting software. That is a very real and valid licence, game engines, codecs, encoders use it all the time.
