Sorry but this is nonsense to me.
The "telemetry" is useful for Microsoft to make VSCode better.
Don't you want VSCode to be better?
It tells Microsoft how much and in which ways people are using VSCode, but it does not spy on the code you're writing.
Think of it what you will, I did say they use it for the reasons you've stated.
But if you subscribe to FOSS philosophy then VSCodium is an option available.
We're a place where coders share, stay up-to-date and grow their careers.
We strive for transparency and don't collect excess data.