Add VSCode settings with cursor rules

[codegen-sh]

This PR adds VSCode-specific settings that include cursor-related configurations:

• Cursor style (line)
• Cursor blinking (solid)
• Cursor animation (smooth)
• Multi-cursor modifier key (alt)
• And other editor settings that affect cursor behavior

These settings complement the .editorconfig file added in PR #972 by providing VSCode-specific configurations that aren't covered by EditorConfig.

The settings are tailored for the languages used in the repository, with specific configurations for:

• Python (4 spaces)
• JavaScript/TypeScript (2 spaces)
• JSON/YAML (2 spaces)
• Markdown (special whitespace handling)

These configurations can be adjusted based on team preferences.