Salesforce Package.xml Generator Extension for VS Code
This extension provides a User Interface to choose metadata components for Package.xml file for development against sandboxes or DE orgs (Org Development Model with VS Code). This is similar to Eclipse Force.com IDE Add/Remove Metadata Components option.
Before you set up Salesforce Package.xml Generator Extension for VS Code, make sure that you have these essentials.
Open the command palette (press Ctrl+Shift+P on Windows or Linux, or Cmd+Shift+P on macOS) and run SFDX Package.xml Generator: Choose Metadata Components command.
In Choose Metadata Components for Package.xml page, select the Metadata you need and click on Update Package.xml button.
Package.xml file opens up with the selected metadata components.
Open the command palette (press Ctrl+Shift+P on Windows or Linux, or Cmd+Shift+P on macOS) and run SFDX: Retrieve Source in Manifest from Org
If you don't want to modify the existing package.xml file & only want the generated xml content, click on Copy to Clipboard button. This copies the formatted package.xml contents to clipboard which can be pasted somewhere else.