Salesforce Extension Pack - Contains official Salesforce Extensions.
GitLens - Work faster with GIT, as the extension mentions, super charger your git experience!
Salesforce code snippet- Type scs and the see the code shortcut suggestions, very useful when working from scratch.
Salesforce Flow visualizer - Helps you see the flow without leaving vscode.
Peacock - Multiple instances are colour coded, makes identification easier (Note: Extension related Changes will be tracked in git, update your .gitignore/exlcude file).
Better Comments - Comments differentiated visually to identify different types of comments.
GitHub Pull Requests - Review your github pull requests without leaving your vscode!!!
SFDX Hardis - Too many tools in one place. (Note: You probably need to install the sf cli plugin to get the best of this extension).
Working with markdown
You can author your README using Visual Studio Code. Here are some useful editor keyboard shortcuts:
Split the editor (Cmd+\ on macOS or Ctrl+\ on Windows and Linux).
Toggle preview (Shift+Cmd+V on macOS or Shift+Ctrl+V on Windows and Linux).
Press Ctrl+Space (Windows, Linux, macOS) to see a list of Markdown snippets.