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I am checking out vscode to see if it does anything better than other options out there. I have the native version control and GitLens installed. I am trying to figure out how to work with version control and one thing has been puzzling. Both GitLens and native source control list both files that are not in the repository and the files that have changed since the last commit in the same list. Is there any way to group these files separately, the way git status does in either of the interfaces?

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VSCode 1.40 (Oct. 2019) seems to provide just that:

Git: Improved untracked files management

You can now manage untracked files separately by using the Git: Untracked Changes setting.

• Choose the separate option, if you'd like to see untracked files in a separate group in the Source Control view.
• Choose hidden if you'd like to never see them.

The default commit action will adjust itself to this setting and will only include untracked changes in a commit when using the mixed setting value.

With VSCode 1.67 (Apr. 2022), setting untrackedChanges to mixed will avoid performance issue.

See issue 140755:

For very large git repositories, the -u option (an alias for -uall) can sometimes make git status take a large amount of time and CPU.

Would like to have an option (off by default) to ignore individual files in untracked directories, which is the default behavior of git status with no arguments (equivalent to -unormal).