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After diving through VSCode’s documentation for proxy support and other related Github issues, it came to me as a surprise that proxy authentication is still not supported for extensions. This is mainly because of the limitations in electron itself. However, the authentication is available for native VSCode features.
So, in cases like these, we have two options. Set the username and password in the environment variables or alternatively set them in the VSCode setting “http.proxyAuthorization” which is stored in the VSCode settings file. Both the solutions are not optimal but unfortunately this is the only way today ☹
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