In my case the issue was the last update (1.97.0) and the solution was to disable gpu acceleration. You can do this by either starting vscode from the command line with gpu disabled flag using "code.exe --disable-gpu" in Windows.

The second method is to add the "disable-hardware-acceleration" line in argv.json in this way:

1. Open command pallete (Ctrl + Shift + P) or (Ctrl + Command + P in Mac)
2. Enter "Preferences: Configure Runtime Arguments"
3. Add config: "disable-hardware-acceleration": true
4. Restart VS Code