It's a single toggle to turn off all telemetry (anonymized, limited to feature usage - no reporting of source files/projects that I've seen), which takes a few seconds to configure at install time as it's literally a menu item (Code > Preferences > Telemetry):
> Next, I wanted to see what would happen when I disabled telemetry. After some activity, I checked the log, and found no events were logged. That is good.
> The absence of logged events doesn’t mean that data is not being sent though! A more accurate way to see what is being sent out is to monitor your outgoing network traffic and analyze the packets.
But unfortunately the author doesn't do that
A bit further down they say
> It looks like you cannot shut telemetry off 100%. These settings will opt you of most data sharing scenarios; but not all data sharing scenarios
And even VSCodium doesn't take it all out
> Even though we do not pass the telemetry build flags (and go out of our way to cripple the baked-in telemetry), Microsoft will still track usage by default.