See post (Forum Post) for a question relating to an issue with parsing the manifest.xml file in the vsCode extension. It looks like a big reported elsewhere and marked as fixed but can still occur if the xml file has comments in it. There is a valid point that we shouldn't be manually editing the file anyway but it would still be more robust to handle it correctly
I think the simple fix in manifestFile.js is to change
this.xmlDoc = xml.create(contents); // line 106 of manifestFile.js
to
this.xmlDoc = xml.create({ parser: { comment: () => undefined } }, contents);