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It looks like you are using VS Code from the OSS github repo. As per Microsoft's VS Code github issue, the marketplace is only available in their Visual Studio Code product that they ship and not via VS Code OSS. If this is the case then you will find that only built-in extensions are working and you won't be able to install any others (e.g. Wallaby.js, Prettier, Gitlens, etc.)
It's confusing that OSS dev mode missing the extension gallery. The are questions about it in issues and stackoverflow. I think it would be helpful to point out the recommended way of working with extensions, so I did a summary of such questions: #23831 #30
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