Actually, the issue link you give actually states that it doesn't if you don't want it to.
It used, at time of issue creation, that one telemetry call was still sent, to tell that you disabled telemetry.
They have since removed that call too, and the only ones left are those to the update server at startup to know if a new version is available (and one to extension market to know if extension updates exists). It can be user disabled, by disabling auto update.
I hate how Windows 10 telemetry is forced down your throat, but for vs code there is no such issue
It used, at time of issue creation, that one telemetry call was still sent, to tell that you disabled telemetry.
They have since removed that call too, and the only ones left are those to the update server at startup to know if a new version is available (and one to extension market to know if extension updates exists). It can be user disabled, by disabling auto update.
I hate how Windows 10 telemetry is forced down your throat, but for vs code there is no such issue