7 points
Even if you know git, you wouldn’t assume that “discard all changes” affects untracked files. It’s bad design all around
1 point
That depends on what you map “discard” to in your mental model. Whoever designed the VSCode feature chose to associate it with reset+clean, rather than just reset. Presumably that’s why they called the menu option “discard” rather than “reset”. (But I agree that this is a surprising choice, and that they managed to make an already-famously-bad UX even worse.)