It does warn you it will erase the file when you discard…
Go read the actual thread. There was a bug someone found that files you have in there that aren’t even associated with git still get deleted. I’m not entirely convinced this was the poster’s fault.
It’s not a bug, it’s intentional. They consider changes to be any change since the last commit including in untracked files. They did update it to make this behavior a lot more obvious though.
This comment in particular does a great job of explaining the UX problem with this. https://github.com/microsoft/vscode/issues/32459#issuecomment-322160461
I just tried right now to get the exact message.
Are you sure you want to DELETE foo?
This is IRREVERSIBLE!
This file will be FOREVER LOST if you proceed.
The confirmation button even says Delete File
…
User error.
If you use git and understand that VSC’s source control stuff is just a thin wrapper around git, you should understand what “discard all changes” means
“discard” is not a git operation. Reset and restore are, but those weren’t the words used.