Check in the .vscode folder if you want to share settings, task configuration and debug configuration with the team.

I think generally it makes sense to share settings (e.g. whitespace vs tabs) with the team if you want to enforce settings in a team.

We in the VS Code team share debug and task specific settings as well because we want our team to have the same set of debug targets and task targets for VS Code.

Btw you do not need to have a .vscode folder in your project for settings. You can also configure settings on a user level.

https://code.visualstudio.com/docs/getstarted/settings

User and Workspace Settings

It is easy to configure VS Code to your liking through settings. Nearly every part of VS Code's editor, user interface, and functional behavior have options you can modify.

VS Code provides two different scopes for settings:

User These settings apply globally to any instance of VS Code you open
Workspace These settings are stored inside your workspace in a .vscode folder and only apply when the workspace is opened. Settings defined on this scope override the user scope.

Creating User and Workspace Settings

The menu command File > Preferences > Settings (Code > Preferences > Settings on Mac) provides entry to configure user and workspace settings.

You are provided with a list of Default Settings.

Copy any setting that you want to change to the appropriate settings.json file.

The tabs on the right let you switch quickly between the user and workspace settings files.

You can also open the user and workspace settings from the Command Palette (Ctrl+Shift+P) with Preferences: Open User Settings and Preferences: Open Workspace Settings or use the keyboard shortcut (Ctrl+,).

In the example below, we disabled line numbers in the editor and configured line wrapping to wrap automatically based on the size of the editor.