Check the Keybindings.

Open Keyboard Shortcut - Press Ctrl + K Ctrl + S or go to File > Preferences > Keyboard Shortcuts. Search for Backspace - In the search bar (at the top) type Backspace. Reset Keybindings - Click on the three-dot menu at the top-right of the Keyboard Shortcuts pane and select Reset Keybinding.

If it does not work, try reinstalling the Visual Studio Code.