A trouble with VS Code

[Truman]

Alright, the last upgrade of Window 10 unexpectedly brought VS Code so I decided to give it a try. Started with following short tutorial from this forum. After installing several extensions something happened and my drop-down menu became transparent gray which is very irritating.

Any idea what is going on here?

also, one more question:

Failed to save 'helloVSC.py': The content of the file is newer. Please compare your version with the file contents.
What does this mean? Why can't I simply save my file after making some edits?

I have no doubts that VSC is a very powerful editor but Notepad++ looks so simple comparing to it. Maybe I'm not ready yet.