Where is VS Code cloning a git repository?

When cloning a repository with the command palette, VS Code clones the repo in the path specified in the setting git.defaultCloneDirectory (/home/vscode/ might be proposed because set in this config variable). If git.defaultCloneDirectory is not set, VS Code clones the repository in the user’s folder. On Windows, this corresponds to C:\Users\\.

If you want to specify a path for git.defaultCloneDirectory, just go to File > Preferences > Settings and then, either search for git.defaultCloneDirectory, or browse to Extension > Git > Default Clone Directory.

As a side note, if you clone a repository from VS Code bash without supplying a destination directory, the repo is always cloned in the user’s folder, even if git.defaultCloneDirectory is set. git.defaultCloneDirectory is used only with the command palette.