I was hoping this would be the thing that makes coding on an iPad not awful. But any keyboard shortcuts are consumed by Safari, so it's a pain to use. However, I hope that this enables the VS Code team to make a native iOS/Android VS Code app that would essentially just be a web browser that uses this functionality.
I absolutely do not want VS Code to be an iOS or Android app, since that means giving up all the massive progress they have made towards fully open web-based development and bowing down to the gated App Store model. If that means a less than perfect experience on iOS devices then so be it. VS Code as it exists today wouldn't even be allowed in the App Store under existing rules.
iOS at least has second-class support for PWAs via 'add to home screen', where it does take up the fullscreen like a regular app without any attestation to a central authority (besides the CA/B racket and Google safe browsing of course).
You can do this right now on android. If you're using chrome/chromium based browser, just visit vscode.dev and then select add to home screen from the browser menu. A similar option exists in firefox on android too, I believe.
Once you open the shortcut created from the previous step, it will open the webapp without the browser's UI.
Do you mean vscode.dev itself hijacking right-clicks to display its context menu[0]? If so, there's this great extension I use to enable it on the myriad of websites that use it for non-alt-context-menu usage[1].