Markdown Inline SVG
Inline SVG images in VSCode's markdown preview.
Overview
Any Markdown image that points to a local .svg file is replaced inline with the
SVG's own markup in the preview — so it renders as a true vector element you can
theme and style, instead of a flat <img>.
Unlike the other extensions in this family, this one runs as a small preview
script rather than a markdown-it plugin: it finds <img src="….svg"> in the
rendered preview and swaps each one for its inlined <svg>.
Syntax
Reference a local SVG as you would any image:

In the preview the <img> becomes an inline <svg>. The image's alt, class,
and inline style carry over to the <svg> element — handy for sizing or
theming (the alt becomes an aria-label):
{ .icon style="width: 1.5rem" }
The { … } attribute syntax above is provided by the companion
Markdown Attrs extension.
About
Part of Markdown Preview Extended Syntax — a pack of Markdown preview syntax extensions you can install all at once.
Source on GitHub.