[Tyriar]

It's intentionally prominent as you're in a potentially very degraded experience. You can just click the x to hide it which is remembered the next time you open the folder. Not having this banner be really obvious would lead to frustrated users who accidentally/unknowingly ended up in this state and silly bug reports wasting everyone's time about language services and the like not working.

[ycombinatrix]

imo there's nothing "degraded" about editing text without arbitrary code execution. that's what text editors are supposed to do.

[FireBeyond]

Visual Studio Code was announced from day one as a lightweight development environment, not as a "text editor".