Workspace

Definition

Good SO article

https://stackoverflow.com/questions/44629890/what-is-a-workspace-in-visual-studio-code

Sandbox

We can sandbox our workspace for different environment and quickly get up to speed in terms of optimizing our workflow for the coding environment.

VSCode workspace is like docker but for developer's environment and it could be highly customizable and very much transparent unlike docker images and the learning curve behind it.

Good SO post about making different workspace with recommended extensions.
https://stackoverflow.com/questions/61850069/separate-visual-studio-code-workspace-with-different-extensions-for-different-pr

It would be like a small config file which could be shareable with development teams so that it results in consistent product and formating.

Microsoft Documentation for VSCode Workspace mentioned that it could be great for consistent editor indentation and formatting rules.
Also it would be great for language specific linting rules or a language precompiled parser for better consistency.

https://code.visualstudio.com/docs/getstarted/settings