A group of Israeli researchers explored the security of the Visual Studio Code marketplace and managed to "infect" over 100 organizations by trojanizing a copy of the popular 'Dracula Official theme to include risky code. Further research into the VSCode Marketplace found thousands of extensions with millions of installs.
Fake news headline. There is no virus installed on millions of computer.
An extension typosquatting an extension with million of install managed to be installed a few hundred of times.
I believe they’re referring to lower down in the article, where the researchers analyzed existing extensions on the marketplace:
If you look at the code of one of the “malicious code”, it hit a … local IP, not a remote one.
Does that mean the hacker is in my room??