I know this is just one data point, but I don't notice any latency when typing code in VS Code. It takes a while to start up, and that is annoying especially for quick short editing jobs, but other than that I never notice any sluggishness. Is this something many people experience?
I can tell for you specifically because everything is specific: machine, hardware, setup, projects...
But I always noticed this latency for everyone I ever saw using vscode or computer that I tried.
To be clear, you might easily not notice it if you are used to that and don't know better. And it is consistent with most electron based apps or editors. But there is a very subtile latency between the time you hit the key in the keyboard and the time that it appears on screen. Basically you are typing letters a little bit in advance. With Kate it is like with a basic text edit, characters appears instantly.
The effect is the same when you type anything in web browsers. In form, editor or whatever.
Project size is obviously going to be a factor, but so is machine specs. It's much more noticeable on a spinning disk. One can partially compensate for the project size aspect by opening vscode as far into your project as possible (eg, the api subfolder) rather than at the root. No real solution if you don't have an ssd though.
I'll get into WSL2 situations where it seems like intellisense activity delays the display of characters I type. Feels like the old dynamic dropdown problem.