In GDM+GNOME, when you login, GNOME Keyring is automatically unlocked. However, it doesn't do so in SDDM+KDE. When you start some GNOME or Electron application like VS Code, they ask you to type the login password again.

The solution is to edit /etc/pam.d/sddm and add pam_gnome_keyring.so like this (the second line and last line):

#%PAM-1.0
auth     include        common-auth
auth     optional       pam_gnome_keyring.so
account  include        common-account
password include        common-password
session  required       pam_loginuid.so
session  include        common-session
session  optional       pam_gnome_keyring.so auto_start

This is a solution that I found here that should work for you. For me, the lines were already there, but I simply had to remove the - at the beginning of the lines.

EDIT: To edit the file, you'll need root privileges, so I did sudo -e /etc/pam.d/sddm in terminal, edited the lines, hit CTRL+X, and Y to save.

This has nothing to do with visual studio, keyrings is a package in your system used to store your passwords read more about keyrings here

to solve your problem open gnome-shell and search: "seahorse"

open it and you will find all your keyrings setup, the default one is what you want, select it right-click to edit or delete it if you are not remembering the password

But NOTE before you delete it any configurations with this keyring "default keyring" will be deleted with it too