This error is usually caused by a permissions issue. It looks like Visual Studio Code is not able to write to the directories specified in the error message.
One solution to this issue is to run Visual Studio Code as an administrator. To do this, right-click on the Visual Studio Code icon and select "Run as administrator."
Another solution is to ensure that your user account has the necessary permissions to write to the directories in question. To do this, navigate to the directories specified in the error message and right-click on them. Select "Properties" and then go to the "Security" tab. Make sure that your user account is listed and has the "Full control" permission.
If the problem persists, you can also try deleting the folders and restarting VSCode.
You can also try to reset the settings for VSCode, by running the command
Code --reset-settings in command prompt.