I am using VSCode version 1.103.0 in 2025 of system installer and marked all the options. But it did not work, even I have tried method that showed up earlier.

Then create a file name vscode_context_menu_fix.reg and paste below code.

Windows Registry Editor Version 5.00

[HKEY_CLASSES_ROOT\*\shell\Open with VSCode]
@="Open with VS Code"
"Icon"="C:\\Program Files\\Microsoft VS Code\\Code.exe"

[HKEY_CLASSES_ROOT\*\shell\Open with VSCode\command]
@="\"C:\\Program Files\\Microsoft VS Code\\Code.exe\" \"%1\""

[HKEY_CLASSES_ROOT\Directory\shell\Open with VSCode]
@="Open Folder with VS Code"
"Icon"="C:\\Program Files\\Microsoft VS Code\\Code.exe"

[HKEY_CLASSES_ROOT\Directory\shell\Open with VSCode\command]
@="\"C:\\Program Files\\Microsoft VS Code\\Code.exe\" \"%1\""

Note VSCODE file path could be different. Please check your's first manually.

Now Double click that file.