The "trust project" feature has been designed to be so extremely intrusive and annoying that the first thing I do is to completely disable it whenever I install VS Code on a new computer. This "solution" was just done to tick some box and put the blame on the user when a security incident happens. It's pretty similar to Windows Vista where it annoyed you with a disruptive popup so many times during the normal course of actions that most people ended up disabling the whole UAC system. Overall security goes down, and Microsoft has a nice excuse.

Vista's annoyance had a purpose, to get program developers to change things to run without escalation. They didn't want you disabling UAC, and these days it breaks things to disable UAC.

By only having an upfront project-wide toggle, VS Code is much worse.