diff --git a/.vscodeignore b/.vscodeignore
index a9397c1a60b1..690c7dace608 100644
--- a/.vscodeignore
+++ b/.vscodeignore
@@ -35,3 +35,4 @@ coverage/**
 CODE_OF_CONDUCT.md
 CODING_STANDARDS.md
 CONTRIBUTING.md
+news/**
diff --git a/news/3 Code Health/1020.md b/news/3 Code Health/1020.md
new file mode 100644
index 000000000000..ddd9b41bfb7e
--- /dev/null
+++ b/news/3 Code Health/1020.md	
@@ -0,0 +1 @@
+Exclude 'news' folder from getting packaged into the extension.