Since VS Code 1.34 (April 2019) a remote extension has been introduced to develop into WSL: https://code.visualstudio.com/docs/remote/wsl.
Basically, a server instance of VS Code is started into WSL, allowing you to use all the WSL tools (e.g. git) from your client instance on Windows.
Thank you for pointing that out @Noornashriq Masnon!