Visual Studio Code App wont run from Applications folder
I had this issue and I found a workaround, which may work for you...


Unzip Visual Studio Code in the download folder.
Right-click Visual Studio code, in the download folder, and select 'Open'. If you're prompted by Gatekeeper, open the application.
From the 'Code' menu, select Preferences > User Settings.
Once the settings files open, you can immediately close them both.
From the 'Code' menu, select Preferences > Keyboard Shortcuts.
As with #3, you can immediately close the files.
Quit Visual Studio Code
Copy the Visual Studio Code application into your Applications folder.
Open it from Applications.


This worked for me - I have no idea why, perhaps a bug to do with accessing the preference file(s)?
Maybe this might work for you?