I am hoping to bring some visibility to the issue by linking to it.
The VS Code extension is adding to the files.exclude section in settings.json in a manner that is frustrating to me.
Even when I am not working in a "Retool App" the extension is adding *tsconfig.json as hidden, to any folder I open.
This caused some confusion when looking to modify the tsconfig of a fresh clone and it was "missing".
Hey @khill-fbmc! Thanks for flagging this and for already making a corresponding GitHub issue, as well.
I'll add this to our internal ticketing system and hopefully get some eyes on it. 
Any news on an update?
I currently have to disable and enable the Retool Extension depending on what I am working on.
I was working on something completely non-Retool, and when I ran Reload Window in VSCode, my tsconfig.json disappeared.
I hope a fix can come soon. It's very frustrating having the Retool Extension smearing the settings in my other projects.
Hey @khill-fbmc - I don't currently have any updates, unfortunately. The fact that this is impacting your dev work outside of Retool is particularly egregious, though. I've commented as such on the existing ticket and asked that it be re-triaged. 
heya darren! just signed up so i could post here as well. i was even looking at putting together a PR in gh but i see the extension code itself isn't public.
FYI to any others: just uninstall the retool extension completely (uninstall from a workspace, remove the item from the registry at ~/.vscode/extensions/extensions.json, then completely remove the folder -- rm -rf ~/.vscode/extensions/retool-retool...)
I was on version 1.0.2
Hey @bejoinka! Welcome to the community. 
I wish it were under better circumstances, but I do have some good news.
We're kicking off a project sprint now that will address a majority of the feedback that we've received on the VS Code extension, including this particular issue. I anticipate being able to share a more concrete update soon!