The problem I have with this is it makes "Go to file" functionality a bit too broad. e.g. If I want to open `package.json` I now have to choose between 10 different files. As I often `Cmd-P`, type pa, `Enter` without even looking, this makes it considerably slower.
I also have to do a lot of context switching (e.g. to review someone else's code), and being able to have a separate set of tabs (even within the same repo) is super-useful for this.
At previous jobs with less separated out code, I have taken this approach (although with Sublime Text rather than VSCode).