No.

As stated in https://github.com/microsoft/vscode/issues/98197, VS Code does not plan on adding this feature in the near term future.

Other options

https://marketplace.visualstudio.com/items?itemName=moshfeu.compare-folders claims to compare folders, but I can’t speak to its effectiveness.

Usually I would just use diff -r or some type of git diff compare, as comparing a lot of files can sometimes not be a fun thing to do manually.

If both folders are git trees it becomes possible to compare them with git diff commands.