VS Code – The git repository has too many active changes, only a subset of Git features will be enabled

A different explanation, not listed yet, might help you if two things are true

1. you have a .git folder higher up in the folder hierarchy that you are not aware of
2. your project that you are working on in VS code does not have an own .git folder

the 2. point is easy to verify.

Regarding the 1. point, you need to write the following in your terminal while being in the directory of your affected project:

git rev-parse --show-toplevel

This command searches a .git folder that is higher up in the directory tree of your files and it will return the location of the first encountered git repository. This means you either will receive a fatal not found or a path.

Go to this directory and delete the .git folder (after checking the log to see that you won’t loose information) and then create a .git folder in your project directory.