I don’t usually use VS code but if it can help - I did a fresh installed Code OSS - with the purpose of answering the question.
$ pamac info code | grep -e 'Version' -e 'Packager' -e 'Build Date'
Version : 1.100.2-1
Packager : Massimiliano Torromeo <mtorromeo@archlinux.org>
Build Date : tor 15 maj 2025 20:05:34 CEST
Installing Python extension throws a message on the inability to verify extension signature
The message is Signature verification failed with ‘UnknownError’ error.
The options are
- Install Anyway (Don’t Verify Signature)
- Report Issue
- Cancel
- Learn More
Where the first option will let the extension setup continue successfully.