@johand Thanks for the info, I'm able to reproduce the issue. There's indeed a problem in the upload feature, which has been solved in the latest versions of Atom. The VSC plugin is a bit behind code wise. We're working on a refactor of the Atom upload feature right now, when that's done we'll upgrade VSC as well to be up to date with it. That'll solve this issue.
For now either be a bit patient with uploading with VSC or temporarily switch to Atom for this project. Sorry for the inconvenience!