Basically gives you a list of all the direct folders under the configured favoriteFolders.baseFolders
This extension contributes the following settings:
favoriteFolders.baseFolders: set base folders from where your favorite folders will be listed
If you're on WSL, you'll see this when you open settings for the extension:
You'll have to select the 2nd tab to get the settings for the remote wsl environment.
This is a known issue in vscode (microsoft/vscode#102146).