Why the VScode extension updates on every single day?

[windoze]

Literally everyday.
This could be the most frequently updated thing I'v ever seen.

Is it really necessary?

[ShoyuVanilla]

We release nightly build every day and stable build once a week, mostly on Monday. Seems like you are on the unstable release channel. You can switch to the stable channel or just turn off auto update.

[lnicola]

You've opted into the nightly (pre-release) version. There's a button to switch to stable on the extension page