I've tried VSCode and I think I'm seeing the same things as you do. The console is definitely wonky and laggy. I've tried it with X11, Wayland, 3D on and 3D off. Nothing hits me over the top of the head to help me figure out if this is VSCode, Fedora, or Fusion related. 

I'm going to try this on.a physical Intel PC running Fedora 39 (good chance for me to upgrade) to see if things are any different.