I think the question is more likely: should an operation like this be possible at all? VSCode already gives you a big warning (as shown in the issue) that "discarding changes" is irreversible but it does not explain what "discarding changes" means.

When people empty their recycle bin they kind of understand what is going to happen. Discarding changes speaks to me but evidently not to this person. Personally I tend to put my code in Dropbox in early stages as git commits do not make much sense (of course one can squash everything and do a rebase but that is advanced git already).