The Atom editor highlights changed files when they are inside a Git repo like:
In visual studio code however I am unable to get the same behaviour. Does someone know if this is possible?
After you click on the files you want to stage, Visual Studio Code moves that file from the Changes folder to the Staged Changes folder, that means that now they are in the staging area. If you want to stage all your files at once, click the + button that appears when you hover over the Changes subtitle.
Update October 24, 2017
It turns out the insider version of Visual Studio code now contains git status color in the file tree. The insiders version is available at https://code.visualstudio.com/insiders/
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