For unrelated reasons I've gone back to neovim. But I used this in vscode for about a year. It works well. I found it got stuck once a day or so and I had to restart vscode. That might have improved by now. Having your keybinding-related config spread out across so many different places (nvim's config, vscode's preferences and keybinding files) is a bit annoying, and I found after initial setup I kept forgetting what was where. And then whatever vi plugin you use, vscode is never going to be entirely consistent about keybindings outside of the main editing panes.

Those relatively minor annoyances aside, vscode-neovim is perfectly workable for daily use.