Try VS Codium. It's VS Code without telemetry

More likely it is features that are disabled because "We can't provide this without you giving us all your data".

Autocomplete/codegen being a great example.

Try Zed. It takes a little getting used to and some config to calm the language servers usage (it downloads some automatically). After that, it's super responsive and powerful out of the box.

I've replaced VSCodium with zed on most of my projects.

There's AI integration baked in, but you never have to touch it or it never interferes with your workflow.