When you do a git status from your command line, it will give you a list of modified and untracked files that currently exist on your local machine.
The M and U in this case is just Visual Studio Code syncing up with Git and identifying (very nicely in the UI, I might add) which files have been modified and which files are untracked.
It\'s just a nice, clear and easy way to look through your workspace and see exactly what your current git status is without having to enter the command on the command line.
Please Note:
You will only ever see modified or untracked files highlighted in Visual Studio Code.
If you delete a file, for example, it will just disappear from your workspace, however your git status, when executed from the command line, will still include a deleted status for that file. But you won\'t see any additional visual representation for this in Visual Studio Code (the file will just not be listed in your workspace any more).