How to Get Rid of the Annoying Editor Movement in VS Code

The last update of VS Code has an annoying side effect: When you start typing in a file, the whole content moves one line down to give space for three dots on top of the editor:

Three dots that move the whole content around

I noticed this behaviour especially with files that are not under version control. That is the important clue, then the culprit of this behaviour is GitLens, a Git extension for VS Code

Hit CTRL-SHIFT-P and start typing for 'GitLens settings' until "GitLens: Open Settings" appears. In the Git CodeLens section (the second group) you can deactivate File scope:

Disable the File scope setting

From now on that annoying movement is a thing of the past and GitLens still can do its Git magic.