This is not quite true on an M1 Mac. The VS Code C# extension only supports .NET Core, and the latest and deprecated release 3.1 has no ARM build. .NET 6 does, but is somehow unsupported.
To me, it's clear Microsoft wants to force people to use VisualStudio over VSCode. Likely not an issue for a .NET shop, but it's yet more shenanigans by Microsoft