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I just want to share here too a little problem with the side panel height jumping as I close the files. I reported it to VS Code, but maybe you can do something about it on your side?
This is vscode behaviour. Problem is variable height of Open editors subview + fixed height of Workspace file explorer + rest of height for favorites.
Increase of height of Favorites subview is result of filling rest of height.
You can:
Drag favorites above file explorer
or
don't use favorites subview for File explorer and use dedicated view accessible from activity bar (heart icon on left).
You can turn off favorites subview by clicking its header and deselecting favorites item
I just want to share here too a little problem with the side panel height jumping as I close the files. I reported it to VS Code, but maybe you can do something about it on your side?
microsoft/vscode#60266
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