Company policies will not allow to install Visual Studio Code Extension or not allow you to update the Visual Studio Code.
After a big struggle, identified the below steps to fix the issue (Windows 10).
1) Go to proxy settings page and copy the entire text from Script address and make sure "Automatic detect settings" is turned off.
2) Go to settings page in Visual Studio Code
(File > Preferences > Settings) and search for Proxy.
Paste the proxy script which we copied in Step 1.
Uncheck the "Http Proxy Strict SSL"
3) Restart Visual Studio Code.
All the best! Thanks.
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