You are allowed wtf.

No. If you're using something other than Visual Studio Code you have to manually download plugins and the MS specific ones use licenses like this.

https://marketplace.visualstudio.com/items/ms-vscode.cpptools/license

SCOPE OF LICENSE. The software is licensed, not sold. This agreement only gives you some rights to use the software. Microsoft reserves all other rights. For clarification Microsoft, or its licensors, retains ownership of all aspects of the software. Unless applicable law gives you more rights despite this limitation, you may use the software only as expressly permitted in this agreement. In doing so, you must comply with any technical limitations in the software that only allow you to use it in certain ways. For example, if Microsoft technically limits or disables extensibility for the software, you may not extend the software by, among other things, loading or injecting into the software any non-Microsoft add-ins, macros, or packages; modifying the software registry settings; or adding features or functionality equivalent to that found in Microsoft products and services. You may not: a) work around any technical limitations in the software that only allow you to use it in certain ways; b) reverse engineer, decompile or disassemble the software, or otherwise attempt to derive the source code for the software, except and to the extent required by third party licensing terms governing use of certain open source components that may be included in the software; c) remove, minimize, block, or modify any notices of Microsoft or its suppliers in the software; d) use the software in any way that is against the law or to create or propagate malware; or e) share, publish, distribute, or lease the software (except for any distributable code, subject to the terms above), provide the software as a stand-alone offering for others to use, or transfer the software or this agreement to any third party.

Look at the usages of "In-Scope Products and Services" in Visual Studio Marketplace's Terms of Service. https://cdn.vsassets.io/v/M253_20250303.9/_content/Microsoft-Visual-Studio-Marketplace-Terms-of-Use.pdf