Use Azure Translator Text to automate translation
XLIFF files are industry standard translation files; they aren't used exclusively by Business Central. Visual Studio Code can't translate all words in an XLIFF file for you, but other Microsoft tools are able to help with that translation.
Multilingual App Toolkit
Download the Microsoft Multilingual app toolkit editor tool.
This tool enables you to open and read .xlf files. You can enter translations in this tool and, after saving your modifications, your translations are ready to be packaged within Visual Studio Code together with your objects and code.
This Multilingual App Toolkit also has a Microsoft Azure Translator Text integration, which allows you to get translations or suggestions for translations directly in the editor tool.
Azure Translator Text
Azure Translator Text is a REST API that you can use to have text translated. Therefore, you need to create a Translator Text service within the Azure portal. For more information, go to Translator Text.
The Translator Text service has a free and a paid option, depending on how many characters or words that you want to translate each month.
After you've created and configured this Translator Text service in Azure, you can link this service within the Multilingual App Toolkit. To configure the service, complete the following steps:
Sign in to your Azure account. If you do not have an Azure account, you can create a free Azure trial account.
In the Azure portal, select the Create a resource button.
Search for Translator Text in the Search the Marketplace search box.
Select the Translator Text tile and then select Create.
Provide a name for your service, select your subscription, select a pricing tier, and then select or create a resource group. A resource group is a logical group within Azure that keeps all services that are linked to each other together.
Select the Create button.
After the service has been created, select your newly created service to configure it.
Select the Keys and Endpoint item in the Resource Management menu.

Keys are generated in the Keys and Endpoint section. Select the Regenerate buttons on top of the page to regenerate the keys.
Copy the first key (Key 1) because you'll need it to link the Multilingual App Toolkit.
The first step is to create the Azure service. The next step is to link this service to the Multilingual App Toolkit. Complete these steps to link the service to the toolkit:
On your development computer (where you installed the Multilingual App Toolkit), search for Credential Manager.
Select Windows Credentials in the window.
In the Generic credentials section, select the Add a Generic Credential link.
Enter the following information:
Internet or network address: Multilingual/MicrosoftTranslator
User name: Multilingual App Toolkit
Password: Your authentication key from Azure (You obtained Key 1 from the previous steps above.)
Select OK to store your credentials.
When you open the Multilingual App Toolkit, it can automatically use the Azure Translator Text service. Open an .xlf file, and then select Suggest or Translate in the ribbon to start translating the words.
Perform this action on every developer computer that needs the Multilingual App Toolkit.