Certain extensions are looking for ~/.config/Code directory to read from settings files. This is an issue as the folder is actually named '~/.config/Code - OSS'. It seems as if this is only an issue for some extensions and not others. The extension that brought this issue to my attention was vscode-icons.
This is an issue both on my desktop and laptop, so it should be easily reproducible. Just install vscode and vscode-icons as an extension, then restart vsocde to find that the info banner that appears, appears on every restart of vscode. Opening the developer tools in vscode shows the error, which is also shown on the github issue below.
Here is the issue that I submitted to their github repo for more info on what a fix to this issue could be: https://github.com/vscode-icons/vscode-icons/issues/1123